Nvidia’s Growth Potential Amid Supply Constraints: A Compelling Investment Opportunity
Morgan Stanley analyst Joseph Moore has maintained their bullish stance on NVDA stock, giving a Buy rating today.
Joseph Moore’s rating is based on several factors impacting Nvidia’s performance. Despite current supply constraints on new products, such as Blackwell and H200, the company has shown robust growth trends. Nvidia has consistently surpassed its guidance in previous quarters, indicating strong demand and effective management. Moore anticipates that the company will continue this pattern of beating expectations, although current supply limitations might slightly temper the immediate outlook.
Additionally, while gross margins may face slight pressure due to the initial ramp-up of Blackwell, Nvidia’s overall financial health remains strong. The demand for Nvidia’s products, particularly the H200, remains high, which suggests sustained revenue growth. With expectations of better gross margins in the short term and significant revenue from Blackwell in the coming months, Moore sees Nvidia as a compelling investment opportunity.
Moore covers the Technology sector, focusing on stocks such as Wolfspeed, Lam Research, and Nvidia. According to TipRanks, Moore has an average return of 13.2% and a 57.44% success rate on recommended stocks.
In another report released today, Piper Sandler also reiterated a Buy rating on the stock with a $175.00 price target.
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Nvidia (NVDA) Company Description:
NVIDIA Corp. designs and manufactures computer graphics processors, chipsets, and related multimedia software. The company operates through two segments:
• Graphics segment: Includes GeForce GPUs (graphics processing units) for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms, Quadro GPUs for enterprise design, GRID software for cloud-based visual and virtual computing, as well as automotive platforms for infotainment systems.
• Compute & Networking segment: Includes Data Center platforms and systems for artificial intelligence, high performance computing, and accelerated computing, Mellanox networking and interconnect solutions, DRIVE for autonomous vehicles and Jetson for robotics and other embedded platforms.
The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.