NEW YORK — Morgan Stanley reaffirmed its bullish outlook on Nvidia, raising its price target to $206 from $200 ahead of the chipmaker’s second-quarter earnings on August 27, 2025. The updated forecast, signaling a potential 14% stock increase from Friday’s close, reflects robust demand for Nvidia’s AI chips, according to CNBC. The bank maintained its “overweight” rating, naming Nvidia its top semiconductor pick as it continues to dominate the AI infrastructure market.
Analyst Joseph Moore highlighted persistent strength across Nvidia’s customer base, extending beyond its largest hyperscale clients like Amazon and Microsoft. “Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so,” Moore noted in a client report, per CNBC. He projected a strong July quarter with $46.6 billion in revenue, up from $45.2 billion, and raised the October quarter estimate to $52.5 billion from $51.3 billion. The optimism stems from Nvidia’s Blackwell GPUs, which are outpacing supply, and the reintroduction of H20 chip sales to China, adding a revenue tailwind.
Key factors driving Morgan Stanley’s confidence include:
- Supply Chain Relief: Improved production capacity expected in late 2025.
- Market Dominance: Nvidia’s projected 85% share of the AI chip market through 2026.
- China’s Return: Controlled H20 chip exports boosting revenue potential.
Despite supply constraints, Moore sees “convex earnings leverage” as production ramps up, with 2026 revenue now forecast at $273.2 billion, up from $264.6 billion. Posts on X, including from @byul_finance, echoed the bullish sentiment, noting the $206 target. As Nvidia’s stock, up 34% year-to-date, nears its $4.4 trillion market cap, analysts remain confident in its ability to fend off competitors like AMD, though some caution that high expectations could temper post-earnings gains.
