Nvidia (NVDA) witnessed a sharp rise of up to 4% after a famous Morgan Stanley analyst raised his revenue and earnings estimate for the next year. The analyst cited an increase in the demand for inference chips as the reason for the rise. Nvidia has maintained its “Buy” status despite various economic challenges. The company is currently focusing on AI-driven growth that categorizes Nvidia as a “top pick” for investors. If you are someone who wants to know more about the Nvidia price target on demand, the following article is for you.
Morgan Stanley’s Joseph Moore Decreases Nvidia’s Price Target
According to the latest updates that came out on Friday, Morgan Stanley’s famous analyst Joseph Moore has officially reduced the price target for Nvidia stocks from $162 to $160. According to the reports, the price target reduction still hints at a 44% upside potential from the current levels. According to Moore’s analysis, the company may witness a short-term, limited upside in the upcoming years. This is mainly because of the uncertainty currently surrounding the economy and the supply constraints it is facing. However, Moore also assured that the long-term outlook for Nvidia remains pretty stable.
Why Does Moore Think Nvidia’s Long-Term Outlook Is Stable?
According to the observations of Morgan Stanley’s famous analyst, Joseph Moore, the main reason behind the potential growth in the future is the strong demand for its GPUs. These GPUs are particularly made to handle inference workloads. He stated that their demand would significantly benefit the company despite the current uncertainties. He also mentioned in his analysis how AI adoption is rapidly growing all over the globe. In such a situation, the demand for inference chips will definitely result in the long-term growth of Nvidia.
Morgan Stanley Raises Its Revenue And Earnings Projections
Considering the rapidly growing demand for inference chips along with the solid fundamentals of NVDA, Morgan Stanley has officially raised its revenue and earnings projections for 2026. The revenue forecast has increased by 10.7%, and the earnings forecast has increased by 11.9%. This means Nvidia is going to witness significant growth in the future. For the year 2027, the firm has revised its revenue forecast upward from $230.9 billion to $255.5 billion. This hints at a 34% year-over-year growth, which was estimated to be only 21% previously.
What Did Joseph Moore Suggest Regarding Nvidia’s Short-term Growth?
According to what Morgan Stanley’s Joseph Moore suggested, Nvidia may witness a decrease in its growth in the upcoming years. This is mainly because of the supply issues it is currently facing, especially with the supply of its Blackwell chips. The Blackwell ramp-up is not going as per expectations. This can possibly result in a slowdown in the growth of the company in the short term.
As per the current situation of the market, the analysts are suggesting a “Strong” for the NVDA stocks. The consensus rating of the stock is based on a total of 35 buys and 5 holds. Currently, the average stock price target for NVDA stock is $167.09. This hints at an upside potential of 50.52% from the current levels.
