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Morgan Stanley Maintains Overweight Rating on NVIDIA Corporation (NVDA), Highlights Latest Developments

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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) is planning to open a new office in Taiwan.

The firm’s analysis noted some challenges for NVIDIA Corporation (NASDAQ:NVDA), 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 (NASDAQ:NVDA).

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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