Morgan Stanley revamps Nvidia's price target ahead of big Q3

Core Viewpoint - Nvidia is at the center of Wall Street's attention as it approaches its crucial Q3 earnings report, with analysts expressing strong optimism about its performance [1][4]. Group 1: Earnings Expectations - Analysts expect Nvidia's Q3 results to show over 50% year-over-year growth in both revenue and earnings, with GAAP EPS projected at $1.20 and revenues at $54.97 billion [2]. - Morgan Stanley's Joseph Moore has raised his price target for Nvidia stock to $220, indicating a 15.8% increase from current prices, anticipating the strongest quarter for Nvidia in some time [1][4]. Group 2: Demand and Product Performance - There is a notable acceleration in demand for Nvidia's Blackwell AI chips, which are now in full production and becoming the default choice for large-scale training and inference [3][5]. - The upcoming Vera Rubin platform, designed as Blackwell's successor, is already experiencing strong demand prior to its official launch [6]. Group 3: Market Sentiment and Future Outlook - Despite Nvidia's recent underperformance compared to some AI peers, analysts believe this trend will not continue, as feedback indicates faster growth than Wall Street models predict [7]. - CEO Jensen Huang's comments suggest that Nvidia may need to increase its revenue by $70 to $80 billion over the next five quarters, indicating that the market may be underestimating Nvidia's potential [7].