Investment bank Morgan Stanley increased its price target on Monday Nvidia (NVDA) inventory checks showed “robust” demand for the company’s current data center processors.
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Analyst Joseph Moore raised his earnings estimates for Nvidia after his company’s channel audits in Taiwan and China showed continued strong demand for Nvidia’s Hopper series products.
However, he was cautious about moving to Nvidia’s next-generation Blackwell series products later this year.
“It is clear that we are at the end of the Hopper cycle and foaminess and visibility are lower than before,” Moore said in a customer note. He said the complexity of the Blackwell range of products could make for “a challenging on-ramp”.
Nvidia Stock Gets Price Target Increase
Moore maintained his overweight, or buy, rating on Nvidia shares. He also raised his price target to 144 from 116. That price target is above Nvidia’s all-time high of 140.76, reached on June 20.
During afternoon trading on the stock market today, Nvidia stock rose 0.3% to 123.96.
On May 23, Nvidia stock broke out of a ten-week consolidation pattern with a buy point of 97.40, according to IBD MarketSurge charts.
“We’re not banging on these levels given the tight valuation since the last earnings report, but this remains the most compelling story in AI’s semis, and as we move from H100 to H200 and then to Blackwell, the visibility and backlog will improve significantly,” Moore said.
He added: “We remain conservative on a 12-month view given the speed at which AI investment has increased amid still uncertain returns.”
Nvidia shares appear on four IBD lists: IBD 50, Leaderboard, Sector Leaders, and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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