Morgan Stanley reinstates Nvidia as its top semiconductor pick after CEO/CFO meetings
What happened
Morgan Stanley's microchip team, led by analyst Joseph Moore, reinstated Nvidia as its 'top pick' among semiconductor stocks on Friday morning after meeting with CEO Jensen Huang and CFO Colette Kress. The firm reiterated its Overweight (buy) rating with a $300 price target. Moore argued Nvidia remains very early in a new product cycle, that 'power shell constraints play into the company's strengths,' and that recent agentic-AI enthusiasm can accelerate adoption of the new Vera line. He called the stock 'very undemanding' at 15x FY28 EPS, noting multiple expansion is 'not required for the stock to work as numbers continue to go higher.' Nvidia shares rose more than 2% in premarket trading to ~$235.96.
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Start your free 14-day trialWho’s affected
- Nvidia (NVDA) directly — overweight rating reiterated with $300 price target. Spillover positive for the semiconductor group (PHLX Semiconductor Index peers like AMD, Broadcom, TSMC supply chain) and AI-infrastructure names (Dell, HPE, Micron) as it reinforces the AI-capex demand narrative.