Nvidia (NASDAQ:NVDA) remains a standout in the investment world as Morgan Stanley (NYSE:MS) reiterates its “Top Pick” status for the chip giant, maintaining an Overweight rating and a $166 price target. Analysts led by Joseph Moore spotlight Nvidia’s cutting-edge Blackwell GPU, poised to dominate the AI landscape by the second half of 2025. Despite short-term constraints like staggered product readiness and tapering Hopper demand, Morgan Stanley assures investors these challenges are transient, emphasizing that Nvidia’s R&D investmentsexceeding $12 billion annuallyare fueling its leadership in AI hardware and innovation.
Driving optimism is Nvidia’s expected 44.1% revenue growth in 2025, underpinned by surging demand for Blackwell GPUs across diverse applications. With Trendforce data confirming manufacturing ramp-up in early 2025, Nvidia is positioned to outpace competitors like AMD (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) in sales growth. Additionally, fears of ASIC competition are waning, as key buyers pivot back to GPUs, bolstered by Nvidia’s efficiency-focused technologies like Mellanox and NV-Link. Analysts also highlight Nvidia’s robust data center growth drivers, including sovereign AI training and enterprise applications, which account for 70% of its data center revenue.
Investors can look forward to a strong start to 2025, with Nvidia CEO Jensen Huang set to deliver a keynote at CES in Januaryhis first in yearshighlighting Blackwell’s exceptional demand despite initial supply constraints. By mid-2025, analysts predict Blackwell will dominate market discussions, potentially unlocking even greater upside for Nvidia’s stock. With AI advancements driving momentum and transitional hurdles fading, Nvidia’s long-term growth prospects remain as compelling as ever.
This article first appeared on GuruFocus.