Nvidia’s GTC conference in Paris didn’t feature any headline-grabbing announcements that immediately impacted its stock, but it did reinforce the company’s strong long-term growth trajectory, according to a research note from Morgan Stanley this week. The firm described the event as “another bullish proof point for Nvidia’s business beyond 2025.”
Morgan Stanley highlighted several key themes from the conference—Europe’s renewed investment push, advances in quantum-classical computing integration, and the rise of industrial and physical AI—as additional growth drivers that complement the broader AI surge.
Nvidia (NASDAQ: NVDA) used the event to spotlight a significant increase in European AI spending. “Earlier this year, the EU unveiled a €200 billion initiative focused on AI,” the company noted, with €20 billion designated to help fund five large-scale AI gigafactories.
Among Nvidia’s own announcements were plans requiring over 3,000 exaflops of Blackwell GPU compute, including a phase-one 18,000 GB200 deployment with French AI firm Mistral and a separate 14,000 Blackwell chip installation in the U.K.
Nvidia also revealed it will develop the world’s first industrial AI cloud tailored for European manufacturing and launch new AI hubs in Germany, Sweden, Italy, Spain, the U.K., and Finland.
Morgan Stanley emphasized Nvidia’s growing focus on “robotics and physical AI,” observing that “investment is already underway.” The firm forecasts that Nvidia’s GPU revenue from Europe could grow by eightfold or more between calendar years 2024 and 2026.
CEO Jensen Huang was reportedly optimistic about timelines for hybrid systems combining GPUs and quantum processors (QPUs), reaffirming Nvidia’s strategy of using classical simulation to complement quantum computing efforts.
Nvidia also expanded its DGX Cloud Lepton platform, adding support from AWS and Microsoft Azure, alongside smaller infrastructure partners. This move aims to simplify global deployment, management, and monitoring of AI compute resources for developers.
Though Nvidia leadership maintained their typically measured tone, Morgan Stanley described management’s outlook as “highly confident,” stating, “Nvidia is significantly outpacing ASIC rivals.” The firm reaffirmed its Overweight rating on the stock and continued to list Nvidia as its Top Pick in the semiconductor sector.
