Morningstar Sees Value in NVIDIA Amid AI Infrastructure Boom
NVIDIA's stock price rose by approximately 1.8% to $198.50 by Friday's close, according to TradingView. This increase comes after Morningstar described the shares as undervalued and maintained a fair-value estimate of $280.
Morningstar senior equity analyst Brian Colello argued that the market was underestimating NVIDIA's longer-term growth prospects due to the continued investment in AI infrastructure by hyperscalers.
The research firm expects hyperscalers to continue investing heavily in AI infrastructure, and doubts internally developed processors will easily replace NVIDIA's technology. In fact, Amazon reinforced this view by increasing its planned 2026 capital expenditure to $220 billion and emphasizing that NVIDIA processors remained important for Amazon Web Services customers.