Morgan Stanley just boosted Nvidia's target — Here's why Blackwell chips are game-changers
Nvidia stock price target 2025: Wall Street's confidence in Nvidia just hit a new level, and it's all because of the AI giant's Blackwell GPUs as enterprise and cloud players are shifting from older chips while locking in forward capacity, as per The Street report.Morgan Stanley has raised its 12-month price target for Nvidia (NASDAQ: NVDA) to $200, up from $170, reaffirming the chipmaker as its top stock pick in semiconductors, according to the report.
"Exceptional demand" is how Morgan Stanley analyst Joseph Moore described the surge in interest for Nvidia's Blackwell architecture, where demand is already outpacing supply, as per The Street.
Moore's team updated their 2026 valuation multiple, as Morgan Stanley raised Nvidia's earnings multiple from 28x to 33x, applying it to Nvidia's mid-year earnings estimate of $6.02 per share, according to the report. That simple shift in math is what helped lock in the $200 target, while underscoring Nvidia's position as Morgan Stanley's top chip stock play, as reported by The Street. But this isn't just about numbers on a spreadsheet. Moore points to growing demand from big customers, from hyperscalers and large enterprise buyers, who are investing in infrastructure faster than anyone expected, according to the report. That surge is being driven by the need to support both inference and large-model AI workloads, as per The Street.
ALSO READ: Texas AI centers guzzle 463 million gallons, now residents are asked to cut back on showersWhile Nvidia is still facing supply constraints, Moore expects that to improve in the second half of this year, as reported by The Street. As production and logistics catch up, he says Nvidia could see a major boost in output and earnings, according to The Street report.He calls it 'convex earnings leverage.' In simple terms, if Nvidia keeps executing, its profits could start to climb at a much faster rate, as per the report.Morgan Stanley's reaffirmation of an Overweight rating comes as Nvidia's Blackwell GPUs have been performing well. TrendForce data projected that Blackwell could potentially represent almost 80% of Nvidia's high-end GPU shipments this year, as reported by The Street.This means it would be a massive ramp beginning in the second quarter and continuing through the close of the year, according to the report. It would be a huge swing in terms of product mix, while underscoring just how fast adoption is moving, as reported by The Street.
ALSO READ: Trump's 25% tariff on Indian goods could make these everyday items shockingly expensive in the US While the AI chipmaker giant said that Blackwell offers a 40x jump in AI training and inference performance compared to Hopper, according to the report. Nvidia also said that Blackwell chip sales have outpaced Hopper's peak, as per The Street.Why did Morgan Stanley raise Nvidia's price target to $200?Because of soaring demand for Nvidia's Blackwell AI chips and an improved earnings outlook.
How does Blackwell compare to Nvidia's older chips? Nvidia says Blackwell offers a 40x improvement over its predecessor, Hopper.
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