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Maintaining its classification as a "Top Pick" with an Overweight rating and a $166 price target, Morgan Stanley has found Nvidia (NVDA, Financials) to be a unique growth prospect. While downplaying temporary transitional problems, the financial company emphasized significant demand for Nvidia's future Blackwell GPU as the main driver of its hopeful attitude.
Under the direction of Joseph Moore, the study noted present issues as transient and recommended that the market acceptance of Nvidia's Blackwell GPUs would determine its long-term viability. Driven by their revenue-generating potential, Moore anticipated that these GPUs will rule conversations by the second part of 2025.
Trendforce's data points to this view: sales predicted to peak in the second and third quarters and Blackwell GPU manufacture expected to rise in early 2025. This path fits Morgan Stanley's projections of a 44.1% revenue increase for Nvidia in 2025, which would surpass rivals like Broadcom (AVGO, Financials) and Advanced Micro Devices (AMD, Financials).
With CEO Jensen Huang coming to give a keynote presentation, Nvidia's attendance at the Consumer Electronics Show in January is likely to support its position. Analysts believe that Nvidia will highlight the great demand for Blackwell GPUs using the event to show how these products would influence the market leadership of the firm.
Morgan Stanley is still sure that supply restrictions would relax by mid-2025, which will let Nvidia fully profit from the expected Blackwell launch success and strengthen its competitive advantage in the GPU market.
This article first appeared on GuruFocus.