Nvidia Stock Update: Key Insights for Investors

Nvidia (NVDA) investors should be aware of recent updates affecting the company and other AI stocks. The video discusses these updates and provides insights for investors. To learn more, check out the short video and consider subscribing. Stock prices used were after-market prices of July 29, 2025. The video was published on July 29, 2025.

Nvidia (NVDA) investors are closely watching recent developments that could significantly impact the company's performance and the broader AI chip market. Two key updates have emerged in the past few weeks, both of which highlight the strong demand for Nvidia's AI chips and the potential for continued growth.

Morgan Stanley Price Target Increase

On July 2, 2025, investment bank Morgan Stanley raised its price target on Nvidia stock from $170 to $200, maintaining an "overweight" rating. This upgrade reflects the bank's conviction in the long-term strength of the AI semiconductor business and the exceptional supply and demand dynamics in the market [1].

The Morgan Stanley analyst, Joseph Moore, noted that AI strength is exceptional in both supply and demand. Moore cited a clear acceleration in inference workloads driving demand for AI chips. He also expressed confidence in the durability of AI spend through 2026 and beyond, given the increasing requests for higher capacity from major cloud customers and neoclouds.

Alphabet's Data Center Expansion

Alphabet, the parent company of Google, recently reported its operating results for the second quarter of 2025, showing robust growth in its Google Cloud segment, driven primarily by AI. Alphabet CEO Sundar Pichai announced that the company's capital expenditures (capex) forecast for 2025 was increased to $85 billion from $75 billion previously, reflecting the significant demand for AI infrastructure [2].

The report highlighted that Google Cloud's order backlog for data center capacity surged by 38% during the second quarter, reaching an eye-popping $106 billion. This substantial demand is a significant tailwind for chip suppliers like Nvidia, which is the leading provider of AI chips for data centers.

Market Implications

The recent updates from Morgan Stanley and Alphabet suggest that Nvidia's business could continue to benefit from strong demand for its AI chips. The company's Blackwell architecture, designed to handle the increased workloads of advanced AI models, has seen token growth outpacing supply, further underscoring the demand for Nvidia's products.

Investors should also note that Nvidia's stock has soared by an eye-popping 1,100% since the start of 2023, but it remains undervalued relative to its 10-year average P/E ratio. The company's revenue growth and gross profit margin have been robust, supporting the strong demand for its AI chips.

Conclusion

Nvidia investors should remain optimistic about the company's prospects, given the recent positive updates from Morgan Stanley and Alphabet. The strong demand for AI chips and the increasing order backlog for data center capacity suggest that Nvidia's business could continue to grow. However, investors should also be mindful of the company's valuation and the potential for volatility in the stock price.

References

[1] https://www.investors.com/news/technology/nvidia-stock-ai-chip-peers-price-target-hikes/
[2] https://www.nasdaq.com/articles/alphabet-ceo-sundar-pichai-just-delivered-incredible-news-nvidia-stock-investors