Morgan Stanley raised the price target on Nvidia’s (NVDA) stock to $220 from $210, while maintaining its Overweight rating on the shares.
Nvidia’s stock dipped about 2% premarket on Friday.
“The market has inflected for the better in the last 45 days, and we expect the strongest result we have seen in the last few quarters as Blackwell gets into full ramp. The stock has done well but has underperformed AI peers, and we think that should reverse,” said analysts led by Joseph Moore.
The analysts noted that Nvidia’s stock has done well, but on a relative basis sentiment has lagged as Application-Specific Integrated Circuit, or ASIC, and Advanced Micro Devices (AMD) growth potential have captured investors’ imaginations.
However, the analysts said that Blackwell remains the AI chip of choice and Nvidia’s Vera Rubin demand signals are strong. The analysts added that competitor enthusiasm reflects progress, but also a strong market.
Nvidia is slated to report its third-quarter fiscal 2026 results on Nov. 19.