- Morgan Stanley (MS) remains bullish on Nvidia (NVDA) ahead of February 26 earnings, setting a $152 price target despite recent market volatility and competition concerns from Chinese AI app DeepSeek.
- While Nvidia’s stock has seen a modest move in 2025 (up 3.4%), strong business fundamentals, improved Blackwell supply visibility, and robust customer demand support Morgan Stanley’s premium valuation thesis.
- The semiconductor giant’s $3.4 trillion market cap and recent 7% stock rebound reflect its continued dominance in AI chip technology, with Morgan Stanley expecting upward earnings revisions in coming months.
Nvidia‘s (NVDA) upcoming earnings report on February 26 has caught the attention of Wall Street powerhouse Morgan Stanley (MS), with the investment bank taking a decidedly bullish stance on the semiconductor giant’s prospects. Despite recent market turbulence, Morgan Stanley’s five-star analyst Joseph Moore sees significant upside potential, maintaining a ‘Buy’ rating and setting a $152 price target for NVDA stock.
The semiconductor titan, now boasting a market capitalization of $3.4 trillion, has faced its share of challenges in early 2025. A notable selloff was triggered by the emergence of Chinese AI application DeepSeek, which sparked investor concerns about potential competition and its impact on Nvidia’s chip demand. However, the stock has demonstrated remarkable resilience, rebounding with a 7% gain over the last five Nas trading sessions to neutralize earlier losses.
Morgan Stanley’s optimistic outlook stems from several key factors that paint a compelling picture for Nvidia’s near-term prospects. The bank points to strengthening business fundamentals and increasing visibility into the supply of Blackwell, Nvidia’s next-generation AI chip architecture. Perhaps most significantly, customer appetite for Nvidia’s products remains robust, suggesting sustained demand despite competitive pressures.
The investment bank’s confidence in Nvidia extends beyond immediate earnings expectations. Morgan Stanley argues that Nvidia deserves to trade at a premium valuation, citing the company’s higher probability of upward earnings revisions in the coming months. This perspective suggests that current market concerns about longer-term risks may be overshadowing the company’s strong underlying business momentum.
While Nvidia’s stock has seen a modest 3.4% gain in 2025, this comes after an exceptional rally last year, suggesting a natural pause in momentum. The current consolidation phase could be setting the stage for the next leg up, particularly if the upcoming earnings report validates Morgan Stanley’s optimistic outlook.
The semiconductor industry’s critical role in advancing artificial intelligence capabilities continues to position Nvidia at the forefront of technological innovation. Despite emerging competitors like DeepSeek, Nvidia’s established ecosystem and technological leadership in AI acceleration provide significant competitive advantages that could drive sustained growth in the quarters ahead.
As investors await Nvidia’s earnings announcement after the market close on February 26, Morgan Stanley’s analysis suggests that the current stock price of $138.48 may represent an attractive entry point for those looking to capitalize on the company’s continued dominance in the AI chip market.
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