Shares of Nvidia (NVDA) are up in today’s trading after Morgan Stanley reaffirmed the chipmaker as a “Top Pick” with an Overweight rating and a $166 price target, although this is slightly down from $168. Indeed, Morgan Stanley highlighted the overwhelming demand for its upcoming Blackwell GPU despite near-term concerns. The investment firm, led by five-star analyst Joseph Moore, acknowledged transitional pressures but believes the strength of Blackwell will dominate the narrative by the second half of 2025.
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Furthermore, an analysis from market research firm TrendForce earlier this week confirmed that Blackwell production remains on track to ramp up in Q1 2025, with shipments expected to peak in the second and third quarters. As a result, Morgan Stanley anticipates Nvidia’s revenue to outpace peers like Broadcom (AVGO) and AMD (AMD) and projects that its revenue will grow by 44.1% in 2025, driven by Blackwell’s strong demand.
Morgan Stanley expects the upcoming Consumer Electronics Show (CES) in January to reinforce this momentum, as Nvidia CEO Jensen Huang is set to deliver a keynote for the first time in years. The firm predicts Nvidia will talk up Blackwell’s exceptional demand and mention how supply constraints will ease up by the middle of the year, which will pave the way for significant upside in the second half of 2025. It’s worth noting that, so far, Moore has enjoyed a 56% success rate on his stock recommendations, with an average return of 13.2% per rating.
Is NVDA a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the past three months. After a 175% rally in its share price over the past year, the average NVDA price target of $177.14 per share implies an upside potential of 31.8% from current levels.
