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Wall Street analysts remain firmly bullish on Nvidia (NASDAQ:NVDA), even as the company navigates a transitional quarter shifting from Hopper GPUs to its next-gen Blackwell line.
Morgan Stanley analyst Joseph Moore raised his price target from $152 to $163, maintaining an Overweight rating. He called Nvidia's Q4 a "transitional" quarter but highlighted the strong demand for Blackwell GPUs, which generated $11 billion in revenue during the period. Despite "unprecedented complexity" in launching new form factors, Nvidia still beat revenue guidance by nearly $2 billion, a feat Moore noted as unmatched in semiconductor history.
Moore acknowledged gross margin pressures tied to GB200 challenges, but from his industry checks, those issues are improving. He also dismissed fears of an AI spending slowdown, arguing that while AI demand may eventually be cyclical, it's nowhere near the end of its growth phase.
Investor sentiment has been mixed, with concerns over Blackwell execution, DeepSeek's AI advances, and rumors that Microsoft (NASDAQ:MSFT) is pausing land acquisitions. Moore called the latter speculation "wrongfully being seen as the end, literally days", predicting enthusiasm will return within six to nine months.
Despite near-term skepticism, analysts see Nvidia's AI-fueled growth staying strong through the year, with Blackwell demand expected to remain exceptional.
This article first appeared on GuruFocus.