Jen-Hsun
Huang,
CEO,
Nvidia
David
Paul
Morris
|
Bloomberg
|
Getty
Images
As
long
as
companies
are
interested
in
generative
artificial
intelligence,
Nvidia
stands
to
benefit.
Nvidia
shares
closed
up
more
than
7%
on
Monday,
underscoring
how
investors
believe
the
company’s
graphics
processing
units,
or
GPUs,
will
continue
to
be
the
most
popular
computer
chips
used
to
power
massive
large
language
models
that
can
generate
compelling
text.
Morgan
Stanley
released
an
analyst
note
Monday
reiterating
that
Nvidia
continues
to
be
a
“Top
Pick”
coming
off
the
company’s
most
recent
earnings
report,
in
which
it
offered
a
better-than-expected
forecast.
“We
think
the
recent
selloff
is
a
good
entry
point,
as
despite
supply
constraints,
we
still
expect
a
meaningful
beat
and
raise
quarter
—
and,
more
importantly,
strong
visibility
over
the
next
3-4
quarters,”
the
Morgan
Stanley
analysts
wrote.
“Nvidia
remains
our
Top
Pick,
with
a
backdrop
of
the
massive
shift
in
spending
towards
AI,
and
a
fairly
exceptional
supply
demand
imbalance
that
should
persist
for
the
next
several
quarters.”
Nvidia,
now
valued
at
over
$1
trillion,
bested
all
other
companies
during
this
year’s
tech
rebound
following
a
market
slump
in
2022,
with
the
chip
giant’s
shares
up
nearly
200%
so
far
in
2023.
Although
Nvidia
shares
dropped
a
little
more
than
10%
this
month,
partly
attributed
to
supply
constraints
and
ongoing
concerns
over
the
broader
economy
and
whether
it
will
experience
a
significant
rebound,
the
Morgan
Stanley
analysts
predict
that
Nvidia
will
benefit
in
the
long
run.
“The
bottom
line
is
that
this
is
a
very
positive
situation,
October
numbers
are
entirely
gated
by
supply,
and
the
upper
end
of
the
buy
side
consensus
has
been
reined
in,”
the
analysts
wrote.
“We
see
numbers
are
going
up
at
least
enough
that
this
stock
will
trade
at
P/Es
more
similar
to
the
upper
end
of
semis,
with
material
upside
still
ahead.”
Nvidia’s
stock
has
tripled
this
year.
The
company
will
announce
second-quarter
results
Aug.
23.
