Reiterated as a "Top Pick" with an Overweight rating by Morgan Stanley (MS, Financial) on Friday, Nvidia (NVDA, Financial) was cited for strong demand for its Blackwell GPU. Early trading Friday showed the company's stock up single digits with the $166 price target remaining the same.
Led Joseph Moore, Morgan Stanley analysts emphasized that worries about transitional constraints are transient and unlikely to influence Nvidia's long-term performance. The analysts in a report to investors said, "by the second half of 2025, the strength of Blackwell will dominate the conversation."
Earlier this week, a Trendforce study revealed that although shipments are to peak in the second and third quarters, Blackwell GPU manufacturing is set to ramp up in the first quarter of 2025. Morgan Stanley expects this to materialize in Nvidia surpassing rivals in sales growth including Advanced Micro Devices (AMD, Financial) and Broadcom (AVGO, Financial).
Driven by Blackwell's industry leadership and great demand across applications, Morgan Stanley estimates Nvidia's revenue to rise by 44.1% in 2025. This most recent support emphasizes the role of Nvidia in the chip space and in driving the AI boom.
