Morgan Stanley reiterated its bullishness on shares of Nvidia ahead of the graphic processing unit designer’s next earnings release on Aug. 27. The bank maintained its overweight rating on the stock, while raising its price target to $206 from $200. This updated forecast implies that shares could rise 14% from their Friday close. Shares of Nvidia have jumped 34% this year. NVDA YTD mountain NVDA YTD chart “Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so. We expect a strong quarter and outlook, but we’re a little measured on the current quarter — our optimism centers on what lies ahead,” analyst Joseph Moore wrote. Moore noted strong demand from Nvidia’s customers, adding that strength has persisted beyond just the company’s “largest handful of spenders.” Bottlenecks on Nvidia’s supply side are also set to improve going forward. “Three months ago, our positive view on demand was more bullish than consensus, and our view that supply issues would get resolved were more bullish than consensus, but consensus has risen on both. But we remain more optimistic on prospects for growing share in 2025 and holding share at close to the current 85% in CY26, against both merchant and ASIC competition,” Moore said. With this in mind, Moore raised his revenue estimate for the July quarter to $46.6 billion from $45.2 billion. He now believes that revenue for the October quarter could come in at $52.5 billion, up from his prior estimate of $51.3 billion. The analyst added that the reintroduction of the China marketplace would be another tailwind for Nvidia’s revenues.
