Nvidia Stock Jumps as Morgan Stanley Calls It a Top Pick After Retreat

Nvidia (NVDA) shares gained Wednesday after Morgan Stanley analysts said the artificial intelligence (AI) darling was a “top pick” after the recent chip sell-off.

Nvidia shares were recently up more than 12% to around $116, extending their year-to-date climb above 130% as other chip shares also rose. The analysts didn’t change their earnings expectations or $144 price target.

“The selloff presents a good entry point as we continue to hear strong data points short term and long term, with overblown competitive concerns,” the analysts wrote, noting that Nvidia’s shares have “sold off on a large list of concerns that we think are likely to fade with time.”

Concerns Are Overblown, Analysts Said

Among the concerns that have weighed on Nvidia and its chip peers are tougher trade restrictions and geopolitical tensions. Investors have also voiced concerns about big tech companies’ scale of AI spending.

Morgan Stanley said strong demand for Nvidia’s next generation of AI chips, the Blackwell, will be a catalyst for share price gains. Blackwell is expected to launch later this year. The analysts also said demand for the H100—the flagship chip of its predecessor Hopper series—remains resilient.

“The earnings environment is likely to remain strong, for NVIDIA and for the whole AI complex,” the analysts wrote.

Nvidia’s earnings report for the second quarter of fiscal 2025 is set for Aug. 28.