Morgan Stanley Boosts Nvidia to Top Semiconductor Pick

Nvidia is back at the top of Morgan Stanley's semiconductor list, according to analysts led by Joseph Moore. The bank argues that Nvidia is still early in a major product cycle and could benefit from another leg of AI demand driven by agents, CPUs, and rising token consumption.

Shares rose about 1.5% in premarket trading following the call. Morgan Stanley analysts reiterated an Overweight rating and a $300 price target on Nvidia.

Nvidia remains very early in the ramp of a new product cycle, powered shell constraints play into Nvidia's strengths, and recent agentic enthusiasm can accelerate Vera adoption, the analysts wrote.