Overweight-rated NVIDIA's (NASDAQ:NVDA) price target was lifted to $750 from $603 per share at Morgan Stanley in a note Wednesday, with the firm stating that AI demand "continues to surge."
Morgan Stanley analysts explained the bank continues to see a very strong near-term picture and believes that various second-derivative anxieties are missing the bigger picture.
"Near-term growth remains very strong," declared the analysts. "The stock has climbed the wall of worry from late 2023; we continue to see very strong near-term results."
"There are many short-term data points, some of which are being interpreted negatively but all of which point to very strong results for the next 2-3 quarters," they added.
Furthermore, Morgan Stanley notes that near-term GPU cloud instances remain very tight, as developers are telling the bank that there are still long waiting lists to train models, while mixed supply chain indicators still point to substantial upside vs. consensus estimates, according to the analysts.
"We remain very comfortable with the competitive dynamic despite the enthusiasm for alternatives," said the analysts, who believe the B100 transition is an important near term driver, impacting H100 lead times and competitive dynamics.