Morgan Stanley Reaffirms Bullish Outlook on Nvidia

Nvidia (NASDAQ: NVDA) is strengthening its position across global cloud infrastructure, according to Morgan Stanley, which met with company management this week. The firm reaffirmed its Overweight rating and a $210 price target, highlighting both short-term demand growth and long-term AI opportunities.

“Investor focus is primarily on the demand picture, where management enthusiasm on both near-term and long-term outlook continues to strengthen,” said Joseph Moore, lead semiconductor analyst at Morgan Stanley.

Nvidia Capturing Cloud Capex Share

Analysts said Nvidia is gaining share within the cloud computing spend cycle, driven by the ongoing migration from CPUs to GPUs.

Most of the current demand has come from AI acceleration within existing workloads, but Morgan Stanley expects transformative AI applications to drive the next phase of growth.
These include healthcare, legal automation, and industrial robotics — which Moore called the “next big waves” for enterprise AI.

“The broadly transformative AI use cases are not even really here yet,” Moore added.

AI Infrastructure Market Seen Reaching $3–5 Trillion

Morgan Stanley estimates the AI infrastructure market could expand to $3–5 trillion by 2030, reflecting exponential demand for compute, networking, and data center capacity.

Robotics and agentic AI systems are expected to extend automation from digital workflows to physical domains.
Nvidia remains central to this ecosystem with its GPU, networking, and software stack strategy.

Vendor Financing as an Accelerant, Not a Risk

Addressing concerns about vendor financing, particularly following Nvidia’s collaboration with OpenAI, Moore said it acts as a growth accelerator rather than a demand distortion.

“Nvidia’s investment approach is to find leverage points where it can accelerate innovation,” Moore said, citing projects with CoreWeave and sovereign data center initiatives in the UK as examples.

Competition With AMD and the AI Chip Landscape

While AMD (NASDAQ: AMD) has gained attention through its own AI chip deals, Nvidia management appears unconcerned about competitive threats.

“Many competitors can build chips that do one thing very well, but Nvidia’s full-stack approach and the flexibility of the GPU give it a durable lead,” Moore concluded.

Strategic Takeaway

The meeting reaffirmed Nvidia’s positioning at the center of the AI compute revolution, driven by unmatched hardware–software integration and global hyperscaler dependency.