Nvidia Stock Gains 1.4% Despite Power Constraints Threatening AI Buildout

Nvidia's stock rose by 1.4% to $242.27 on October 6, 2026, continuing its upward trend from the previous day. The gains came despite concerns over electricity shortages that could impact AI infrastructure development. Morgan Stanley noted that while power constraints pose a real threat to the industry, they do not expect these bottlenecks to disrupt Nvidia's 2027 forecasts. The bank highlighted that Nvidia's visibility into chip deployments and close coordination with customers provide some protection against these challenges.

According to Morgan Stanley, U.S. data-center developers face a 32-gigawatt net power shortfall through 2028, even with alternative supplies. The bank suggested that memory and optical suppliers are more vulnerable to deployment delays than Nvidia, whose leading accelerators are less affected. Despite this reassurance, Morgan Stanley cautioned that insulation is not immunity, and investors should monitor whether customers can energize new capacity on schedule.

Nvidia's financial performance underscores the critical nature of power availability. The company reported $89 billion in quarterly data-center revenue, accounting for roughly 92.5% of its $96.2 billion total revenue. This makes power availability not just an engineering concern but a key business issue. While Nvidia's shares are currently trading at a 39.93% discount to the $403.34 GF Value estimate, there is no guarantee that this gap will close.