By Khac Phu Nguyen
Publication Date: 2026-10-02 17:13:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA), the AI-computing and accelerator company, regained Morgan Stanley’s top semiconductor pick as shares rose approximately 1.1% to $236.8 at 10.55am ET Friday morning, October 2. The firm kept its Overweight rating and $300 price target. That leaves roughly 30% upside from the quoted priceand puts the next product cycle squarely in investors’ sights.
According to MarketWatch’s reporting, Morgan Stanley pointed to the early Vera cycle, supply constraints that favor established suppliers and growing CPU and GPU demand from agentic AI. The investment case stretches beyond another round of chatbot spending. AI systems that execute tasks could expand computing demand, giving Nvidia another opportunity to sell the hardware behind that work.
The GF Score of 96/100 shows strong profitability and growth, while the weaker GF Value reading makes valuation the clearest pressure point. A strong business still needs earnings to justify its price. For investors, the next test is whether the architecture transition delivers additional sales while protecting margins. Morgan Stanley’s target sets a high bar; execution has to clear it.
