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

Morgan Stanley has named Nvidia as its top semiconductor pick, with analyst Joseph Moore highlighting significant growth potential for the company. Moore maintains an Overweight rating and a $300 price target, suggesting a roughly 28% upside for Nvidia shares.

The analyst's optimism is fueled by the expanding demand for AI infrastructure and new revenue opportunities beyond Nvidia's core GPU business. Notably, Nvidia and Amazon Web Services (AWS) plan to deploy an additional 2 million Nvidia GPUs across AWS infrastructure during 2027 and 2028. This expansion also includes work involving Vera CPUs, networking, and NVLink Fusion.

Nvidia has further bolstered its financial strategy by increasing its share-repurchase authorization by $150 billion, leaving $235 billion available through fiscal 2028. This move is seen as another source of support for shareholders as the company continues to invest in AI infrastructure.

Moore anticipates that Nvidia could benefit from growing demand for AI computing, as well as potential constraints in electricity, data-center construction, and financing. Additional revenue streams are expected from Vera CPUs, networking products, and Groq LPUs.