Morgan Stanley Raises NVIDIA Price Target to $170

Morgan Stanley analyst Joseph Moore raised the price target on NVIDIA (NASDAQ: NVDA) to $170 (from $160) while maintaining an Overweight rating.

“Raising estimates: We are increasing our revenue estimates for FY26 (CY25), while maintaining y/y growth in FY27 and FY28 at similar levels (33% in FY27 and ~16.5% in FY28).

For the October quarter we move revenue from $49.007bn to $51.299bn and non-gaap EPS from $1.10 to $1.17.

For FY26 our revenue and non-gaap EPS move from $190.818bn/$4.09 to $198.821/$4.33, and FY27 comes up to $264.648bn/ $6.28 from $252.890bn/$6.01 previously.

Thoughts on the stock: Racks get better from here.

China is entirely derisked, at least for direct shipments, and we are optimistic that there will be some path to monetize at least a portion of that demand.

Gross margins have bottomed and are improving to the mid 70s, sustainably. And every customer commentary confirms that customers waiting for these new technologies have left demand on the table.

So our confidence in durable demand drives is quite high. We think that our numbers are conservative given the variables at play, and we see a high probability of continued upward revisions.

PT to $170, up 6% from our prior target of $160. That’s based on an unchanged target multiple of ~28x MW our new MW EPS of $6.02 ($6.28 non-gaap).

28x MW (27x non-gaap) is a premium to the broader semis group, but about in-line with where large cap AI semis peer AVGO is trading (29x non-gaap).”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.