As Nvidia Approaches Earnings, Morgan Stanley Maintains Its Bullish Outlook

Morgan Stanley remains confident in Nvidia’s growth trajectory as the GPU powerhouse prepares to release its next earnings report on August 27.

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The investment bank reiterated its overweight rating on the stock while nudging its price target up to $206 from $200, signaling potential upside of roughly 14% from Friday’s closing price.

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So far in 2024, Nvidia shares have surged 34%, reflecting strong investor confidence in the company’s dominance in the AI and data center markets.

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“Investor expectations have climbed ahead of Nvidia’s earnings and we believe that’s justified,” said Joseph Moore, equity analyst at Morgan Stanley. “We anticipate solid results and a robust outlook, though our real optimism lies beyond this quarter.”

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Moore highlighted continued demand across Nvidia’s customer base, noting that the strength isn’t confined to the company’s largest clients. This broad-based demand, combined with easing supply constraints, sets the stage for ongoing growth.

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“Three months ago, we were more bullish than consensus on both demand and the resolution of supply issues. Since then, market expectations have caught up but we remain even more optimistic about Nvidia’s ability to expand share in 2025 and sustain an impressive ~85% share into CY26, even against merchant and ASIC rivals,” Moore added.

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Reflecting this confidence, Moore raised his revenue forecast for the July quarter to $46.6 billion, up from his previous estimate of $45.2 billion. For the October quarter, his projection now stands at $52.5 billion, compared with an earlier estimate of $51.3 billion.

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Another potential growth lever: the re-entry into the Chinese market, which Moore believes could serve as a meaningful tailwind for Nvidia’s sales trajectory.

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While short-term earnings momentum is encouraging, Morgan Stanley’s bullish stance is primarily anchored in Nvidia’s longer-term competitive advantages including leadership in AI accelerators, deep ecosystem integration, and robust customer relationships.

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The firm sees these factors driving sustained revenue growth and margin expansion well into 2025 and beyond.

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