Morgan Stanley Sees 28% Upside for Nvidia with $300 Target

Morgan Stanley has reinstated Nvidia as its top pick in the semiconductor sector, with analyst Joseph Moore reaffirming an Overweight rating and a $300 price target. This target suggests approximately 28% upside for the company, reflecting its expanding footprint beyond core GPU offerings.

Nvidia's collaboration with Amazon Web Services (AWS) is set to deploy an additional 2 million GPUs across AWS infrastructure by 2027 and 2028. The company is also advancing with Vera CPUs, networking solutions, and NVLink Fusion, diversifying its revenue streams beyond traditional GPUs.

Nvidia has further bolstered its financial strategy by increasing its share-repurchase authorization by $150 billion, bringing the total available for repurchases to $235 billion through fiscal 2028. This move is seen as a means to support shareholders while the company continues to invest in AI infrastructure.

Analyst Joseph Moore anticipates that Nvidia will benefit from growing demand for AI computing, especially as customers face challenges related to electricity, data-center construction, and financing. Additional revenue opportunities are expected from Vera CPUs, networking products, and Groq LPUs.