Nvidia (NASDAQ:NVDA) is getting a boost from Morgan Stanley ahead of its earnings report next week. The bank has raised its stock estimate, anticipating a robust quarter despite supply constraints. Analysts expect sales of Blackwell to reach $5-6 billion in the January quarter, slightly lower than previous expectations.
The analysis notes that Nvidia’s new products are fully supply-constrained, which could limit upside for the current quarter and outlook. However, Morgan Stanley analysts believe that more significant upward revisions will occur later in the year.
Morgan Stanley forecasts better gross margins for Nvidia in October, despite initial Blackwell ramp expected to come at lower margins starting in January. They expect minimal mix-related headwinds in October and costs associated with the initial Blackwell rollout to be avoided in subsequent periods.
The bank has raised its revenue forecast for FY26 from $166.9 billion to $176.78 billion, while also increasing its price target from $150 to $160 based on a 42x multiple of forward earnings per share estimates for calendar year 2025.
Nvidia remains Morgan Stanley’s top pick, with the bank expecting the Blackwell cycle to drive meaningful upside through the second half of the year.
Source: https://www.investing.com/news/stock-market-news/morgan-stanley-lifts-nvidia-price-target-estimates-ahead-of-earnings-3714615