On Monday, May 19, Morgan Stanley maintained its Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $160. The firm’s analysts highlighted the company’s recent announcements, including the new NVlink Fusion interconnect technology, which enables integration with custom ASICs and non-NVIDIA CPUs, including those from Qualcomm and Fujitsu. The firm’s analysts noted that further analysis is needed to better understand how this can affect customer choices and competition, especially compared to the upcoming UAlink technology.
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation also unveiled RTX PRO servers designed for the enterprise AI inference market. These servers feature NVIDIA networking technologies and up to 8 Blackwell RTX Pro Graphics 6000 cards. The company aims to expand its enterprise solutions and the RTX PRO servers will support the company’s AI enterprise software platform.
NVIDIA Corporation upgraded its robotics foundation model, Isaac GR00T, by adding a new synthetic data generation framework called Isaac GR00T-Dreams. This update will improve training for humanoid robots. The company is also close to launching its first personal workstation computers. The DGX Spark is expected to launch in July and the DGX Station will launch later this year.
The company is also making strategic moves to strengthen its global presence and announced a partnership with Foxconn and the Taiwan government to build a supercomputer with 10,000 Blackwell GPUs. Taiwan Semiconductor Manufacturing Company is expected to be the main customer for this project. Furthermore, NVIDIA Corporation is planning to open a new office in Taiwan.
The firm’s analysis noted some challenges for NVIDIA Corporation, including a revenue headwind of over $5 billion because of the US Commerce Department banning H20 sales in China and the early-year issues with the GB200. However, Morgan Stanley expects the company to address these problems over time and expects a strong second half of the year for NVIDIA Corporation.
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