Morgan Stanley lowered the firm’s price target on Nvidia (NVDA) to $160 from $162 and keeps an Overweight rating on the shares. As investor sentiment is worsening based on macro and supply chain risks, core demand for GPUs has shot higher in the last four weeks amid a shortage of inference chips across most of the relevant LLMs, in all geographies, says the analyst, who adds that the idea that “we are in a digestion phase for AI is laughable given the obvious need for more inference chips which is driving a wave of very strong demand.” Near term estimates are are capped by export controls and still limited by Blackwell supply, but that is ramping quickly, adds the firm, which says Nvidia remains a top pick.
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