At Extreme Investor Network, we are always on the lookout for the next big investment opportunity. Today, we want to talk about Nvidia, a company that Morgan Stanley Wealth Management believes is poised for even bigger gains from current prices.
According to Morgan Stanley Wealth Management, Nvidia is the dominant maker of graphics processing units (GPUs) used in artificial intelligence. The asset manager recently increased its position in Nvidia and currently has an overweight rating on the stock. Despite a 14% loss last week, Nvidia managed to rise 3.7% on Thursday, extending its advance this week to 8.4%.
In fact, Nvidia has soared almost 67% this year after more than tripling in 2023. Morgan Stanley Wealth Management has set a $1,000 price target for Nvidia, implying that the stock could rise another 21%. The bank sees Nvidia as a leader in AI GPUs, with economies of scale and pricing power that justify a higher valuation.
One key factor driving Nvidia’s potential growth is the growing AI tailwind. The company recently announced a new AI chip, and if demand outstrips supply, similar to what has happened over the past year, consensus expectations for gross margins may be too low for FY25 and FY26. This could lead to upward earnings revisions in the near term, making Nvidia a compelling investment opportunity.
At Extreme Investor Network, we believe that Nvidia’s strong position in the AI market and potential for further growth make it an attractive investment option. Stay tuned for more insights and analysis on the latest investment opportunities!
