By Samuel O’Brient
Publication Date: 2025-12-02 16:02:00
Nvidia has been under pressure in recent weeks amid a rethink of the AI trade, but one top bank says investors don’t have much of a reason to worry about the chip king.
Nvidia stock is down 9% over the last month. Even its blockbuster third-quarter earnings failed to generate new excitement for the company and the broader AI sector. Big-name investors like Peter Thiel and SoftBank have dumped the stock, adding pressure.
But Morgan Stanley’s Joseph Moore this week pushed back on the downbeat narratives, increasing the bank’s price target for the stock to $250 from $235 on Monday. The new target is among the highest on Wall Street, and implies a nearly 40% jump from current levels.
Moore said that he thinks threats to the AI leader’s market share, specifically those in Asian markets, are overstated.
Speculation that Nvidia’s dominance in the AI market may be threatened isn’t new. Ever since the AI leader shot to the top of the tech sector following the launch of ChatGPT in November 2022, investors have wondered how long it can maintain the rank as the top AI hardware maker.
Morgan Stanley doesn’t see any other chipmakers as posing a significant threat to Nvidia, though, even as China prioritizes building out its own domestic semiconductor supply chain. The analysts recently visited Asia and shared their take on why Nvidia shouldn’t be worried about competition from the east.
“While there is much attention being paid to Chinese AI solutions, we…
