Morgan Stanley Reinstates Nvidia as Top Semiconductor Pick and Raises Target

Nvidia shares traded near record highs around $233.95 after Morgan Stanley reiterated an Overweight rating, raised its price target, and reinstated the chipmaker as its top pick in semiconductors. The endorsement followed an investor roadshow with senior leadership. Morgan Stanley highlighted strong AI hardware demand, an undemanding valuation of 15 times fiscal 2028 earnings, and architectural advances, including the Vera Rubin platform generating $40 billion per gigawatt. Nvidia previously reported second-quarter revenue of $96.22 billion, though fourth-quarter gross margins are expected to compress to 71% to 72% on rising memory costs.