NVIDIA Stock Upgraded by Morgan Stanley to $200 PT, Maintains Overweight Rating

Morgan Stanley upgraded NVIDIA's price target from $170 to $200 and kept its Overweight rating. Analyst Joseph Moore expects further gains driven by AI strength, supply and demand, and the Blackwell ramp in the second half of 2025. Moore's call arrives ahead of NVIDIA's earnings release on August 27, with expected earnings per share of $1 and quarterly revenue of around $45.68 billion.

Morgan Stanley has raised its price target for NVIDIA (NVDA) to $200, reflecting the company's strong performance in the AI sector and anticipated demand for its next-generation Blackwell chips. Analyst Joseph Moore, who maintains an Overweight rating on the stock, cited exceptional AI demand from hyperscalers and internet firms as the primary driver behind the upgrade [1].

Moore's new target is based on robust demand for NVIDIA's Blackwell AI chips, which are in high demand and expected to see supply constraints ease in the second half of the year. The analyst noted that the Blackwell chip's superior performance and cost-effectiveness are driving adoption among cloud providers and enterprise buyers [1].

In addition to the AI chip demand, NVIDIA has placed a significant order for 300,000 H20 chips from TSMC to capitalize on strong Chinese demand following the easing of US export restrictions [4]. The company's executive, Jensen Huang, has emphasized China's unique market potential, suggesting that NVIDIA is positioning itself to capitalize on the growing AI market in the region.

Despite the positive outlook, NVIDIA faces challenges in obtaining export licenses from the US government to ship the H20 chips. However, the company has been assured that these licenses will be granted soon, although a specific timeline for approval has not been specified [4].

Moore's call arrives ahead of NVIDIA's earnings release on August 27, with expected earnings per share of $1 and quarterly revenue of around $45.68 billion. The analyst expects further gains driven by AI strength, supply and demand, and the Blackwell ramp in the second half of 2025. NVIDIA's AI chip, Blackwell, has been in high demand, with supply constraints expected to ease in the second half of the year [1].

References:
[1] https://www.ainvest.com/news/morgan-stanley-raises-nvidia-price-target-200-exceptional-ai-demand-2508/
[4] https://m.economictimes.com/tech/technology/nvidia-orders-300000-h20-chips-from-tsmc-due-to-robust-china-demand-sources-say/articleshow/122964865.cms