nvidia stock buy rating sparks intrigue
New York, Tuesday, 18 February 2025.
Morgan Stanley has recommended a strong buy for Nvidia stock ahead of the company’s earnings report on February 26. This move comes despite Nvidia’s rocky start to 2025, with notable recovery trends in recent sessions. Analyst Joseph Moore of Morgan Stanley has intensified interest by maintaining a buy rating with a price target of $152, suggesting a potential 10% upside. Over the past year, Nvidia’s stock has doubled, and it is rated as a strong buy by numerous analysts. The consensus price target is significantly higher, indicating continued confidence in Nvidia’s short-term performance, despite broader market sentiment shifts. Morgan Stanley believes that Nvidia should be valued at a premium due to positive near-term business trends, even as longer-term risks loom. The earnings report is eagerly anticipated, with analysts forecasting strong results that could further bolster Nvidia’s stock performance.
Market consensus and analyst support
The investment community shows overwhelming support for Nvidia, with 37 Buy and 3 Hold recommendations from Wall Street analysts [1][2]. The average price target stands at $179.03, suggesting a potential upside of 29.01% [1]. This strong consensus comes despite Nvidia’s modest 2025 performance, showing only a 0.39% increase year-to-date, though the stock has demonstrated resilience with a 6% recovery in recent trading sessions [1].
Recent market challenges
Nvidia has faced significant market turbulence, with its market value experiencing a $300 billion reduction in the past week [4]. The company’s stock was particularly affected during a challenging period for tech stocks, joining other industry leaders in a notable 14% decline [4]. Despite these setbacks, Morgan Stanley maintains their bullish stance, emphasizing the company’s strong near-term business prospects [1].
Competitive position in AI sector
Nvidia maintains a dominant position in the AI sector, with a market capitalization of $3.40 trillion and a P/E ratio of 54.69 [2]. The company’s stock performance has attracted significant attention among major tech companies, including IBM and Amazon, who have also received strong analyst ratings in the AI space [2]. This positioning reinforces Morgan Stanley’s premium valuation stance [1].