Analyst Joseph Moore of Morgan Stanley maintained a Buy rating on Nvidia (NVDA – Research Report), reducing the price target to $160.00.
Joseph Moore has given his Buy rating due to a combination of factors that highlight Nvidia’s strong position in the market. Despite investor concerns over macroeconomic and supply chain risks, the demand for Nvidia’s GPUs has surged, driven by a shortage of inference chips needed for large language models across various regions. This demand is further fueled by the rapid growth in token generation, which has increased significantly since the start of the year, leading to a substantial investment in infrastructure to support these workloads.
Moreover, Moore points out that while supply constraints and export controls are currently limiting short-term numbers, the overall demand for inference chips remains robust. He dismisses the notion that the AI market is in a digestion phase, emphasizing the ongoing need for more chips. Nvidia’s strong position in the AI cycle and its ability to ramp up production quickly make it a top pick for investors, according to Moore’s analysis.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $185.00 price target.
Based on the recent corporate insider activity of 123 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.