Nvidia’s (NASDAQ:NVDA) never-ending soar has slowed down even more recently. Although conditions have not deteriorated by any means, and the stock price has risen more than 172% over the year, there are various concerns on investors’ minds.
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However, Morgan Stanley analyst Joseph Moore sees past developments and believes current sentiment sets the stage for strong future performance. “We have tended to be most enthusiastic about NVIDIA when near-term data points look mixed, but the underlying dynamics are very strong. We are at that point now. We think it’s close,” the five-star analyst said.
Addressing investor concerns, Moore believes some are overstated, while others may cause anxiety in the short term but are “irrelevant in the long term.” .
So what are these concerns? There’s the fact that the pace of building previous generation hopper units has slowed. But that’s not surprising as products approach the end of their lifespan. This may create some noise early next year, but it’s “not a problem”. While Hopper’s earnings will continue for a few more quarters due to its high backlog, it’s time to shift resources to newer Blackwell products.
As for Blackwell, there are concerns about the timing of the rollout of the product, which has several variations, and Moore has heard there are “concerns about some of the types that are not ready”. However, Moore says you should expect that not all versions will ship at the same time. In any case, coming off a trip to Asia, analysts claim that Blackwell’s overall supply is “exceeding expectations, and this is the most important move.”
There are also concerns about “ASIC compromise”. ASICs have been a prominent part of the AI landscape for years, as evidenced by Marvell and Broadcom’s growth projections. But here Moore sees customers increasingly preferring GPUs for their versatility and performance, and Nvidia is well-positioned to gain market share in 2025.
Essentially, Moore’s view is that demand for Blackwell is key and investors just need to be patient for now. “The next few quarters will be a transition period, with earnings upside similar to the past two quarters (albeit without gross margin headwinds) until numbers break out around Blackwell at 2:25. “I think so,” Moore summed up.
As such, NVIDIA maintains its status as a “Top Pick,” with Moore reiterating his Overweight (i.e. Buy) rating backed by a $166 price target and a 20% upside in the coming months. This suggests that we will record an increase in (Click here to see Moore’s track record)
Of the 40 NVDA reviews submitted in the past three months, 37 gave a Buy rating and only 3 recommended a Hold, all adding up to a Strong Buy consensus rating. Masu. The average target is $177.14, resulting in a one-year return of 28%. (See NVIDIA stock price forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
