Morgan Stanley Reaffirms Nvidia as a Buy Amid Expanding AI Opportunities

After meeting with Nvidia (NVDA, Financials) management, Morgan Stanley maintains its optimistic view. Nvidia's AI growth is still early, according to analyst Joseph Moore. The corporation gets more cloud spending and its chips are constantly popular.

Moore said businesses are still switching from CPUs to GPUs, which has driven Nvidia's growth. When new AI applications appear, he warned, the real excitement will begin. Healthcare, law, and manufacturing are investigating how AI may impact their operations. Nvidia's development potential increases.

He also suggested that robotics might bring AI to the real world with industry-specific models. Moore highlighted that this supports Morgan Stanley's projection that AI infrastructure might be valued $3 trillion to $5 trillion by 2030.

Moore discussed Nvidia's vendor financing arrangements with OpenAI and CoreWeave. He said those expenditures are meant to accelerate innovation by opening more data centers faster.

Moore claimed Nvidia's team doesn't seem concerned about AMD's rivalry. Although competitors make good CPUs, Nvidia has a long-term advantage since it has a hardware, software, and developer tools platform.

Wall Street remains optimistic. 39 analysts follow Nvidia. 36 suggest buy, two say hold, and one says sell. Prices might rise over 16% to $219.42, the average price prediction.

Investors will watch Nvidia's upcoming earnings report and AI partnerships to see how fast growth will accelerate.