Nvidia Stock Poised To Shoot Higher Despite Latest Pressure Ms Says

Bonisiwe Shabane

-Dec 31, 2025, 6:08 PM

nvidia stock poised to shoot higher despite latest pressure ms says

Nvidia‘s (NVDA) upcoming earnings report on February 26 has caught the attention of Wall Street powerhouse Morgan Stanley (MS), with the investment bank taking a decidedly bullish stance on the semiconductor giant’s prospects. Despite recent market turbulence, Morgan Stanley’s five-star analyst Joseph Moore sees significant upside potential, maintaining a ‘Buy’ rating and setting a $152 price target for NVDA stock. The semiconductor titan, now boasting a market capitalization of $3.4 trillion, has faced its share of challenges in early 2025. A notable selloff was triggered by the emergence of Chinese AI application DeepSeek, which sparked investor concerns about potential competition and its impact on Nvidia’s chip demand. However, the stock has demonstrated remarkable resilience, rebounding with a 7% gain over the last five Nas trading sessions to neutralize earlier losses. Morgan Stanley’s optimistic outlook stems from several key factors that paint a compelling picture for Nvidia’s near-term prospects.

The bank points to strengthening business fundamentals and increasing visibility into the supply of Blackwell, Nvidia’s next-generation AI chip architecture. Perhaps most significantly, customer appetite for Nvidia’s products remains robust, suggesting sustained demand despite competitive pressures. The investment bank’s confidence in Nvidia extends beyond immediate earnings expectations. Morgan Stanley argues that Nvidia deserves to trade at a premium valuation, citing the company’s higher probability of upward earnings revisions in the coming months. This perspective suggests that current market concerns about longer-term risks may be overshadowing the company’s strong underlying business momentum. While Nvidia’s stock has seen a modest 3.4% gain in 2025, this comes after an exceptional rally last year, suggesting a natural pause in momentum.

The current consolidation phase could be setting the stage for the next leg up, particularly if the upcoming earnings report validates Morgan Stanley’s optimistic outlook. Got a confidential news tip? We want to hear from you. Sign up for free newsletters and get more CNBC delivered to your inbox Get this delivered to your inbox, and more info about our products and services. © 2025 Versant Media, LLC.

All Rights Reserved. A Versant Media Company. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Nvidia's NVDA.O stock hit a record high on Wednesday, and the chipmaker reclaimed the crown as the world's most valuable company after an analyst said the chipmaker was set to ride a "Golden Wave"... Shares of the Santa Clara, California-based company rose over 4% to a record high of $154.10.

The rise sent Nvidia's stock market value to $3.76 trillion, overtaking Microsoft MSFT.O, which was last valued at $3.65 trillion following a 0.2% increase in its stock. Fueling Nvidia's latest rally, Loop Capital lifted its price target for the designer of high-end AI processors to $250 from $175, while maintaining its "buy" rating. "Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand," Loop Capital analyst Ananda Baruah... Nvidia's latest gains reflect the U.S. stock market's return to the "AI trade" that fueled massive gains in chip stocks and related technology companies in recent years on optimism about the emerging technology. Shares of Nvidia Corp.

(NVDA) gained nearly 3% in mid-day trade on Thursday after analysts at Morgan Stanley shrugged off the DeepSeek sell-off. Since DeepSeek’s launch on Jan. 24, Nvidia’s stock has lost over 10% of its value. In its latest note, Morgan Stanley underscored that Nvidia's growth drivers continue to be in good health — this includes Blackwell supply visibility, near-term business prospects, and customer spending desires. The brokerage noted that DeepSeek has created “some headwinds” for Nvidia around export controls and expects governments “will do something,” but it is not sure exactly how that will be done. It called DeepSeek’s launch an “evolutionary upgrade” rather than a revolutionary one.

Nvidia Stock Poised To Shoot Higher Despite Latest Pressure Ms Says

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The Rise Sent Nvidia's Stock Market Value To $3.76 Trillion,