Finance linked society, October 12 (Editor: Huang Junzhi), Morgan Stanley's latest analysis predicts that due to the continuous surge in demand for its gpu chip business, Nvidia's stocks are expected to further rise.

Analysts from Morgan Stanley held a three-day meeting with Nvidia's CEO Jensen Huang, CFO Colette Kress, and other members of the chip maker's management team in New York this week.

Analysts stated after the meeting that they see more signs of sustainable demand, with positive sentiment driving Nvidia's stock price closer to historical highs and potentially breaking through this level.

Morgan Stanley analyst Joseph Moore stated, 'Every sign from management indicates that we are still in the early stages of a long-term investment cycle for ai.' The bank reiterated its 'shareholding' rating on Nvidia's stocks, with a target price of $150, implying a potential increase of 11.2% from current levels.

He pointed out that the stock remains the top choice in the semiconductors sector, mentioning that Nvidia is still at the forefront of ai innovation and has the opportunity to gain new market share. He expressed very bullish sentiments on Nvidia's long-term prospects, but considering the current stock price rebound, he believes that short-term gains will somewhat increase the profitability threshold.

On the other hand, Moore also mentioned the highly anticipated new Blackwell chip series in the market. He stated that production of Nvidia's next-generation gpu chip - Blackwell, is 'proceeding as planned', and the supply for the next 12 months has already been sold out, meaning customers who place orders now will not receive goods until the end of 2025.

Analysts say, "this will continue to drive strong short-term demand for existing Hopper architecture products". This meeting fully demonstrates that Blackwell's business remains strong and highly forward-looking.

According to Moore, there is a new "element" in Nvidia's story, namely that inferential computing "begins to address more complex problems, requiring richer hardware combinations". The report states that this should be good news for Nvidia's GPU chip product line.

Moore said, "The long-term vision is that every company in the world will be able to employ a large number of 'digital AI employees' capable of performing challenging tasks."

"A more thoughtful, task-oriented reasoning will lead to an exponential leap in reasoning complexity, this concept brings us an important new path of growth, as well as another clear area where Nvidia can increase its leading edge advantage," he added.

Moore also revealed that Nvidia CEO Jensen Huang has clearly indicated to Morgan Stanley that the company expects meaningful growth in 2025, which will continue into 2026, "although he did not quantify it".

Editor/ping