By Lisa Kailai Han
Publication Date: 2026-03-02 16:32:00
Morgan Stanley says it’s time for investors to lean back into Nvidia as it trades at what the investment bank calls an attractive entry point. The Wall Street bank stood by its overweight rating and $260 price target on the dominant AI chipmaker and nation’s largest public company. It also named Nvidia its top semiconductor pick, replacing Micron Technology. Shares of Nvidia have rallied 45% over the past year, but are down about 3% in 2026. Morgan Stanley’s 12-month price target implies 47% upside versus Nvidia’s Friday close of $177.19. NVDA 1Y mountain NVDA 1Y chart Analyst Joseph Moore wrote that shares of Nvidia now sell for 18 times estimated earnings for 2027, a “surprisingly good entry point.” Lackluster Moore pointed to concerns about Nvidia’s market share and sustainability as causes for the recent lackluster performance. But he said that there is no evidence suggesting that hyperscaler investments in Nvidia’s chips will peak this year. “There is simply no indication that the current investment cycle has run its course, and there is plenty of evidence that the spenders intend to keep spending for at least a couple more years,” he wrote. “So we don’t buy into hundreds of gigawatts in 2029, but we also don’t see a peak in 2026, and our growth expectations for CY27 grow seemingly by the week.” Nvidia’s market share may dip this year, but demand will remain robust for Nvidia’s Rubin product, shipping in the second half of the year, the analyst added. The bank also…