Nvidia price target raised to $170 from $160 at Morgan Stanley

Nvidia price target raised to $170 from $160 at Morgan Stanley

Morgan Stanley has raised its price target for Nvidia Corporation (NASDAQ: NVDA) to $170 from $160, citing strong fundamentals and robust growth prospects. The upgrade comes amid a period of significant market volatility for the chipmaker, which has been navigating U.S.-China trade restrictions and intense market expectations.

Nvidia's stock has surged more than 22.1% over the past month, including a fractional gain over the past five trading sessions, bringing the stock back to roughly where it was at the beginning of the year. The recent rebound has sparked mixed reactions among analysts, with some raising price targets while others caution against headwinds following new U.S.-China trade developments [1].

Despite these challenges, Nvidia has shown resilience through its pivot to U.S. AI infrastructure investments and new chip designs for China. The company's $3.2 billion in capital expenditures in fiscal 2025, expanding Blackwell accelerator production and AI infrastructure, underscores its commitment to growth and innovation [1].

The AI market is projected to grow at a 37% CAGR through 2030, supporting Nvidia's $170 billion fiscal 2026 revenue forecast. The company's record adjusted gross profits of $28.9 billion in its fourth-quarter earnings call in February, driven by AI chip demand, further highlight its strong financial performance [1].

Morgan Stanley's upgrade reflects a bullish outlook on Nvidia's ability to sustain its recovery and drive further growth. The analyst firm noted that Nvidia's strategic position in the global AI deployment cycle, along with its robust cash reserve and investments in U.S. AI infrastructure, position it well for future growth. However, the analyst also acknowledged the potential risks associated with U.S.-China trade restrictions and competition from other AI chipmakers.

Institutional investors hold 68% of Nvidia's shares, with Vanguard Group being the largest stakeholder at 2.2 billion shares, followed by BlackRock with 1.9 billion. Analyst sentiment remains bullish, with 55 out of 61 analysts recommending buying shares, 11 of them with Strong Buy ratings [1].

Despite the recent price target upgrade, Nvidia's stock remains volatile. The company's share price has been on a rollercoaster ride, peaking at $153.13 in 2024 before dropping 36.89% from its January high due to China export restrictions. The recently announced pause in U.S.-China tariffs, however, sparked a resurgence in its shares [1].

As Nvidia prepares to release its first-quarter fiscal 2025 earnings, investors will be closely watching for signs of recovery in gross margins and potential revenue impacts from H20 restrictions. The company's ability to navigate these challenges and capitalize on growth opportunities in the AI market will be critical to its long-term success.

References:
[1] https://247wallst.com/investing/2025/05/28/nvidia-nasdaq-nvda-stock-price-prediction-for-2025-where-will-it-be-in-1-year/
[2] https://www.investing.com/news/analyst-ratings/bofa-maintains-nvidia-stock-buy-rating-and-160-price-target-93CH-4062904