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Nvidia stock has actually skyrocketed this year amid the AI investment frenzy. More gains could come.
Dream time
nvidia
The stock had a rocky start to the year, but has since died down. Now may be a good time to buy, as stocks are set to move on the back of next week’s quarterly earnings and keep an eye on it
Morgan Stanley
as a winner.
chip maker
nvidia
(Stock ticker: NVDA) has been one of the main beneficiaries of this year’s craze around artificial intelligence, with the stock up nearly 190% since January, boosting
Standard & Poor’s 500
And
Nasdaq.
But recent price action has been slow: While the stock rose 3.9% on Monday, shares have fallen more than 10% since peaking in late July, which analysts led by Joseph Moore at Morgan Stanley say is linked to macro concerns and concerns about supply. .
The dip is a great buying opportunity, according to Moore’s team, who named Nvidia its top earnings pick. Morgan Stanley rates Nvidia as Buy with a $500 price target, implying a gain of 23.5% from Monday’s opening price below $405. It’s not a dissenting view of the consensus on Wall Street, as Nvidia stock has the average rating of Buy among analysts surveyed by FactSet, with an average price target above $515.
Nvidia is due to report earnings after the bell on August 23rd, and Moore’s team at Morgan Stanley is expecting explosive results and a strong outlook.
“We believe the recent sell-off is a good entry point, because despite supply constraints, we continue to expect a meaningful win and increase quarter – and more importantly, a solid view over the next 3-4 quarters,” Morgan Stanley’s staff wrote. “Nvidia remains our top pick, against the backdrop of a massive shift in spending toward AI, and a somewhat exceptional supply-demand imbalance that should persist over the next several quarters.”
Write to Jack Denton at jack.denton@barrons.com