Nvidia, AI Chip Stocks Get Lift From Bullish Morgan Stanley Report

Investment slope Morgan Stanley connected Friday issued a bullish study connected artificial quality chipmakers, calling Nvidia (NVDA) banal a apical prime for 2025.

The steadfast besides raised its terms targets connected AI spot stocks Astera Labs (ALAB), Broadcom (AVGO) and Marvell Technology (MRVL), each of which it rates arsenic overweight, oregon buy. It kept its overweight ratings connected Advanced Micro Devices (AMD) and Nvidia, though it trimmed its terms targets connected both.

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AMD and Nvidia marque graphics processing units, oregon GPUs, optimized for AI applications successful information centers. Broadcom and Marvell marque customized AI chips for hyperscale unreality work providers. Astera makes high-speed connectivity chips for AI information centers.

Morgan Stanley expert Joseph Moore said investors person grown cautious connected Nvidia banal precocious due to the fact that of near-term concerns. Those concerns see slowing request for current-generation Hopper bid products and imaginable delays and proviso constraints for next-generation Blackwell bid products.

Another interest is GPUs facing accrued contention from application-specific integrated circuits, oregon ASICs, from Broadcom and Marvell.

Moore said immoderate of the concerns are overstated and others volition beryllium irrelevant longer term.

The adjacent catalyst for Nvidia banal could beryllium a keynote code by Chief Executive Jensen Huang astatine the CES tech commercialized amusement successful Las Vegas connected Jan. 6.

Moore said Huang's connection astatine the amusement apt volition be: "Blackwell request is exceptional, but proviso constrained."

Nvidia Stock Rises After Reassuring Report

On the stock marketplace today, Nvidia banal roseate 3.1% to adjacent astatine 134.70.

In his report, Moore trimmed his terms people connected Nvidia banal to 166 from 168. He besides lowered his terms people connected AMD banal to 158 from 169.

At the aforesaid time, helium raised his terms people connected Astera Labs to 142 from 94. He upped his people connected Broadcom to 265 from 233 and connected Marvell to 120 from 102.

On Friday, AMD banal accrued 0.3% to adjacent astatine 119.21. Astera Labs climbed 5.5% to 132.17. Broadcom precocious 1.1% to 220.79. Marvell roseate 2.6% to 111.90.

Nvidia banal is connected 2 IBD lists: Leaderboard and Tech Leaders.

Astera Labs is connected 4 IBD banal lists: Leaderboard, Tech Leaders, IBD 50 and IPO Leaders.

Broadcom banal is 2 lists: Big Cap 20 and Tech Leaders.

Follow Patrick Seitz connected X, formerly Twitter, astatine @IBD_PSeitz for much stories connected user technology, bundle and semiconductor stocks.

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