Morgan Stanley Restores Nvidia as Top Semiconductor Pick

Nvidia's stock surged 2.6% on Friday, October 2, after Morgan Stanley restored its top semiconductor pick status.

The firm maintained an Overweight rating and a price target of $300 for Nvidia NVDA shares, which currently trade at approximately $236.8.

This leaves roughly 30% upside potential from the current price, with investors' eyes on the next product cycle.

Morgan Stanley attributed this move to several factors, including supply constraints that favor established suppliers and growing demand for CPUs and GPUs from AI-driven systems.

The firm's target sets a high bar for Nvidia's execution, which will need to deliver additional sales while protecting margins in the architecture transition phase.