Nvidia is expected to deliver a standout quarter as its next-generation Blackwell platform scales quickly, according to Morgan Stanley. The bank said market conditions have “improved sharply over the last 45 days” and that it anticipates “the strongest results we have seen in several quarters.”
Morgan Stanley raised its price target on Nvidia to $220 from $210 and reaffirmed its Overweight rating.
Analyst Joseph Moore noted that Nvidia’s stock performance has been strong but has trailed other artificial intelligence names. He said this is partly because investor attention has shifted toward ASICs and AMD’s potential growth.
Even so, the firm said Blackwell “remains the preferred AI chip,” adding that demand signals for the Vera Rubin architecture are “very strong.” Morgan Stanley also said competitor excitement reflects real progress but also highlights how strong the overall AI market has become.
The bank expects Nvidia to show a clear improvement in momentum. It forecasts a “breakout quarter” compared with recent trends, citing industry checks that show a “material acceleration” as Nvidia has resolved earlier rack-related bottlenecks and demand continues to grow.
Morgan Stanley added that growth limits are now more about supporting hardware—such as storage, memory, and servers—as well as space and power constraints, rather than Nvidia’s own supply capacity.
The firm believes customer and supplier demand signals point to faster growth than current estimates suggest, especially since Nvidia typically reports later in the quarter.
Morgan Stanley also highlighted comments from CEO Jensen Huang, who indicated that revenue expectations for the next five quarters should increase by $70–$80 billion. Despite this, the bank noted that Nvidia’s share price is now “10% lower than it was” after Huang’s remarks, which it sees as evidence of a disconnect between expectations for Nvidia and the broader AI ecosystem.
