Five Stocks to Rally Soon According to Morgan Stanley

Morgan Stanley is highlighting several stocks it believes still have significant potential for growth heading into June, with a mix of technology, financial, and e-commerce companies topping its list. Despite recent market turbulence, analysts at the firm remain bullish on a handful of overweight-rated names that they expect to outperform, citing strong fundamentals, attractive valuations, and industry tailwinds.

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Nvidia
At the forefront of Morgan Stanley’s top picks is Nvidia, which continues to defy concerns about potential slowdowns. The firm notes that Nvidia is easing investor worries about demand following the recent AI-driven surge, especially as growth drivers beyond China remain strong. Analysts believe the worst of the market’s fears are now behind the stock. They emphasize that Nvidia's story remains compelling, with robust momentum and consistent execution across its AI and data center businesses. The firm reiterated its overweight rating and named Nvidia its top semiconductor pick, stating, “Everything should get better from here.”

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Seagate
Another name Morgan Stanley is particularly optimistic about is Seagate Technology. The data storage company is viewed as a strong beneficiary of rising computing power, which in turn boosts demand for storage. Analyst Erik Woodring described Seagate as a “still underappreciated” play in this trend, trading at just 7.5 times peak earnings per share. Following the company’s analyst day in May, he expressed increased confidence in its long-term growth prospects.

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According to Morgan Stanley, Seagate’s leadership in technology, strong profit margins, solid free cash flow, and capital returns make a strong case for further earnings growth and stock revaluation. The firm has also raised its price target on the stock to $140 and reinstated Seagate as a top pick. So far in 2025, shares of Seagate are up 36%.

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Coupang
Morgan Stanley has also added South Korean e-commerce giant Coupang to its list of top picks. Analyst Seyon Park noted that the company has continued to gain market share despite competitive pressure.

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He praised Coupang’s consistent execution, as well as its insulation from global trade risks and its advantage from a weaker U.S. dollar. The firm raised its price target on Coupang to $32 from $27, citing strong performance across the board. Park emphasized that the company remains a compelling investment opportunity, both in terms of valuation and growth potential. Shares of Coupang have climbed 27% so far this year, and Morgan Stanley believes there’s still room for more upside.

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Nubank
Latin American digital bank Nubank also remains a firm favorite. Morgan Stanley analysts led by Jorge Kuri argue that the market continues to underestimate the company’s ability to grow profitably, particularly in Brazil. They highlight Nubank’s unique position as an all-in-one financial platform, providing services from salary deposits to credit card and loan applications.

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According to the analysts, Nubank is outperforming both traditional banks and other digital players in terms of customer engagement and product penetration. The stock has gained nearly 16% in 2025, but Kuri sees significant room for further appreciation. He summed up Nubank’s strength by saying, “It leads in both reach and relevance.”

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Sallie Mae
Finally, student loan provider Sallie Mae (SLM) has retained its place as a top pick. Morgan Stanley notes that the company is exploring strategic alternatives to its whole loan sales, such as joint ventures, which could create more predictable, asset-light cash flows and justify a higher valuation multiple.

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Analysts believe that once there is more clarity on government policy around student lending, Sallie Mae will be well positioned to project additional volume growth in late 2026 and into 2027. The company’s proactive approach to adapting its business model and capitalizing on policy shifts makes it a stock to watch, according to the firm.

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Across these picks, Morgan Stanley points to a common theme: companies that not only show strong execution and resilience in uncertain macro conditions, but also possess long-term structural advantages in their respective industries.

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Whether it’s through leadership in AI (Nvidia), riding the data explosion wave (Seagate), dominating e-commerce in Asia (Coupang), revolutionizing digital banking in Latin America (Nubank), or innovating in student lending (Sallie Mae), these firms are all positioned for continued growth.

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For investors seeking opportunities in a choppy market, Morgan Stanley believes these names represent some of the most promising bets heading into summer 2025.

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