Investment bank Morgan Stanley on Monday raised its price target on Nvidia stock after sales channel checks showed "robust" demand for the company's current data-center processors.
Analyst Joseph Moore increased his earnings estimates for Nvidia after his firm's channel checks in Taiwan and China. Those checks showed continued high demand for Nvidia's Hopper series products.
However, he was cautious about the transition to Nvidia's next-generation Blackwell series products later this year.
"It is clear that we are at the tail end of the Hopper cycle, and the frothiness and visibility is lower than it was," Moore said in a client note. He said the complexity of the Blackwell series products could make for "a challenging ramp."
Nvidia Stock Gets Price-Target Hike
Moore kept his overweight, or buy, rating on Nvidia stock. He also raised his price target to 144 from 116. That price target is above the all-time high for Nvidia stock of 140.76, reached on June 20.
On the stock market today, Nvidia stock rose 0.6% to close at 124.30.
On May 23, Nvidia stock broke out of a 10-week consolidation pattern at a buy point of 97.40, according to IBD MarketSurge charts.
"We aren't pounding the table at these levels given the sharp appreciation since the last earnings report, but this remains the most compelling narrative in the AI semis space, and as we transition from H100 to H200 and then Blackwell, visibility and backlog will improve materially," Moore said.
He added, "We continue to be conservative beyond a 12-month level of visibility, given how quickly AI capex has surged amid still uncertain returns."
Nvidia stock is on four IBD lists: IBD 50, Leaderboard, Sector Leaders and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
