Morgan Stanley revamps Nvidia's price target ahead of big Q3

AI poster-child Nvidia (NVDA) is again astatine the halfway of Wall Street’s attraction arsenic the chipmaker heads into its astir important net study of the year.

With Q3 results expected to hit connected November 19, analysts are weighing in, without being shy astir wherever they stand.

Morgan Stanley’s Joseph Moore conscionable bumped his terms people connected Nvidia banal to $220 (a 15.8% summation from existent prices), calling the AI behemoth to station its strongest 4th successful immoderate time.

Throw successful Mr. Market’s expectations for top-and-bottom-line numbers to surge implicit 50% twelvemonth implicit year, and the setup looks remarkably optimistic.

For much color, Wall Street expects GAAP EPS to onshore astatine $1.20, on with $54.97 cardinal successful revenues for Q3.

More importantly, Nvidia’s caller underperformance hasn’t done overmuch to chill the market’s enthusiasm heading into the large report.

The market’s attraction is locked firmly onto Nvidia arsenic analysts heap caller optimism up of the upcoming quarterly report.

Morgan Stanley’s Joseph Moore terms people bump lone adds substance to the momentum, particularly connected the backmost of explosive gross and net maturation expectations. Also, with AI stocks cooling off, Nvidia’s study mightiness beryllium the infinitesimal erstwhile investors refocus connected the industry’s powerhouse.

Ahead of Nvidia’s hotly anticipated Q3 report, Moore states that manufacture checks constituent to a “material acceleration” successful demand, the benignant that tends to amusement up successful Nvidia’s numbers a 4th oregon 2 later.

A large portion of that is Blackwell, which has moved into afloat production, with customers treating it arsenic the default prime for grooming and inference astatine scale.

Perhaps what’s adjacent much enticing for investors is that Vera Rubin, the level designed arsenic Blackwell’s successor, is already showing “very strong” request earlier it officially launches.

Related: Bank of America resets Nvidia banal forecast earlier earnings

Moore besides makes the lawsuit that Nvidia’s caller lag down immoderate of its AI peers won’t last. With lawsuit and supplier feedback highlighting quicker maturation than Wall Street models predict, helium believes the stock’s cooling-off play is temporary.

Additionally, helium points to CEO Jensen Huang’s caller comments, forecasting that the adjacent 5 quarters whitethorn request to rise by $70 to $80 billion, arsenic different crushed wherefore Mr. Market is down the curve.

Related: Goldman Sachs unveils banal marketplace forecast done 2035

Surprisingly, contempt bumping his ain expectations supra the consensus, Moore inactive feels his forecast is “conservative,” which says a batch astir Nvidia’s momentum.