NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Analysts Are Watching Closely. On August 18, Morgan Stanley reiterated the stock as “Overweight” and raised its price target on Nvidia to $206 per share from $200. The rating comes ahead of the chipmaker’s earnings print on August 27.
“Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so. We expect a strong quarter and outlook, but we’re a little measured on the current quarter — our optimism centers on what lies ahead.”
-Analyst Joseph Moore .
Moore highlighted strong demand from Nvidia’s customers beyond its “largest handful of spenders.”
“Three months ago, our positive view on demand was more bullish than consensus, and our view that supply issues would get resolved were more bullish than consensus, but consensus has risen on both. But we remain more optimistic on prospects for growing share in 2025 and holding share at close to the current 85% in CY26, against both merchant and ASIC competition.”
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Keeping this in mind, the firm has modeled $46.6 billion in revenue for July, up from $45.2 billion.
“So how would we put this together around the quarter? We model $46.6bn in revenue for July, up from our prior $45.2bn, and $52.5bn in revenue for October vs our prior $51.3bn. We think investor expectations are moderately higher based on some of those supply inputs noted above, and we see the rationale for upside. But our assumption is that more of that comes in January; either way these figures represent numbers that are still undershipping end demand, and momentum should continue into next year, which is an important factor when thinking about a continued bid to the stock. Should China fully come back into the picture, that would be additive to our assumptions. As such, we are raising our 2026 estimates, from revenue/non-gaap EPS of $264.6bn/$6.28 to $273.2bn/$6.51. As far as our PT, we had assumed ~33x our MW CY25 EPS estimate of $6.02; we are maintaining that ~33x target multiple but on our now $6.25 in MW EPS that brings the PT to $206.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
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