Shulou(Shulou.com)11/24 Report--

On August 15, Morgan Stanley, a leading investment bank, said on Monday local time that chipmaker Nvidia would benefit from "huge changes" in the field of artificial intelligence. Nvidia shares rose more than 7% on the day to close at $437.53, with a total market capitalization of $1.08 trillion.

This highlights investors' belief that Nvidia GPU will continue to be the most popular computer chip, powering large language models that can automatically generate text. Nvidia will benefit as long as companies are interested in generative artificial intelligence.

An analyst report released by Morgan Stanley on Monday reiterated that Nvidia remained the company's "Top Pick" stock in the most recent quarter, and Nvidia, which reports results next week, is expected to continue to exceed expectations.

"We think the recent sell-off is a good buying point," Morgan Stanley analysts wrote. Despite supply constraints, we still expect the stock to be better than expected and continue to rise in the quarter. More importantly, the next three to four quarters are highly predictable. "" In the context of a massive shift in spending to artificial intelligence and continued anomalies in the supply and demand imbalance in the coming quarters, Nvidia remains our preferred stock. "

After a sharp fall in the US stock market in 2022, Nvidia now has a market capitalization of more than $1 trillion, beating all other companies in this year's tech stock rally. Nvidia shares have risen 200% so far in 2023.

Nvidia shares fell 6% this month, in part because of tight supply and continued concerns among investors about the overall economy and whether there would be a sharp rebound. But Morgan Stanley analysts predict that Nvidia will still benefit in the long run.

"the most important thing is that the current situation is very positive, the October data are completely constrained by supply, and the upper limit of the buyer's consensus has been controlled," the analyst wrote. "We believe that the share price will at least rise to the high end of the price-to-earnings ratio of Nvidia shares to bring the price-to-earnings ratio closer to the semiconductor concept stock market earnings range, and there is still substantial upside in the future."

Nvidia will report results for the second quarter of fiscal year 2024 on August 23.

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