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Nvidia , along with other chipmakers, could extend recent gains as AI demand continues to grow, according to Morgan Stanley. Analyst Joseph Moore, who reiterated his overweight rating on the artificial intelligence chip darling, upped his price target on the stock to $200 from $170. That implies about 14% upside from Tuesday’s closing price. “AI strength is exceptional in both supply and demand. All of our data points and contacts are telling us that customers need more compute, and we are seeing a clear acceleration in inference workloads driving that,” the analyst wrote on Wednesday. “We see significant upside in the 2H of the year with the new Blackwell product cycle for both processors and connectivity/networking/memory, and raise our price targets across our AI semis group.” Nvidia shares have had a strong year, rising almost 31%. Earlier this month, the chipmaker that it’s planning to begin deliveries of its H20 general processing units (GPUs) to China “soon.” That came after the company said back in April that it will take a quarterly charge of about $5.5 billion due to export restrictions to China. NVDA AMD YTD mountain NVDA vs. AMD, year-to-date Advanced Micro Devices , which has outpaced Nvidia year to date with a whopping 47% advance, could also see a boost from that move, Moore added. While he has an equal weight rating on AMD, his updated price target at $185 from $121 reflects more than 4% upside ahead. “The reinstatement of products for the China market has added a new tailwind for AMD/NVDA in the second half, but our enthusiasm is still centered around the level of demand from the core cloud customers,” the analyst wrote. “We see Nvidia as the biggest winner of that spend, but AMD should also see upside in the second half around the Mi350 product cycle as well.” Along with Nvidia and AMD, Moore remained overweight on other chipmakers like Broadcom , saying that “strong AI spend” will drive upside, which will primarily come “from the networking side rather than processors.” AVGO YTD mountain AVGO, year-to-date Moore increased his price target on Broadcom to $338 from $270, implying more than 13% upside, and reiterated his overweight rating on the name. Shares of that company have advanced more than 28% this year.
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