Morgan Stanley Bets on Nvidia (NVDA)

Morgan Stanley reaffirmed its bullish view on Nvidia (NVDA) ahead of the August 27 earnings release, raising its price target from $200 to $206.

The firm maintained its Overweight rating, implying a potential upside of 14% compared to Friday's close. Year-to-date, the stock has gained 34%.

Analyst Joseph Moore noted that expectations are high, but justified. Although he is more cautious about the current quarter, his optimism is focused on the future outlook.

Upwardly Revised Estimates

Moore noted that customer demand remains strong and has outperformed the small group of large buyers. Furthermore, supply constraints are beginning to resolve, strengthening the outlook.

The analyst emphasized that three months ago his view on demand and the resolution of bottlenecks was more positive than the consensus, and today he maintains an even more optimistic stance.

With this in mind, Moore raised his revenue estimate for the July quarter to $46.6 billion, from $45.2 billion previously. For October, his forecast rose to $52.5 billion, up from $51.3 billion previously.

The reopening of the Chinese market appears to be an additional catalyst for the company's revenue. The bank believes Nvidia could maintain a market share close to 85% in 2026, even in the face of competition from other manufacturers.