Nvidia (NVDA, Financial) is back in the spotlight after Morgan Stanley came away “more positive” on the company following an analyst Q&A session at its GTC event.
Morgan Stanley analyst Joseph Moore noted that Nvidia's management sounded upbeat about its Blackwell architecture, even as some investors have started to waver. CEO Jensen Huang revealed that the four biggest cloud providers—Amazon (AMZN, Financial) Web Services, Azure, Google (GOOG, Financial) Cloud, and Oracle (ORCL, Financial) Cloud—have already ordered 3.6 million Blackwell GPUs for 2025. That's nearly three times the 1.3 million Hopper GPUs bought in 2024.
According to Moore, Nvidia shared these figures to remind investors that demand remains strong, even as concerns swirl about shifting cloud budgets and competition from application-specific integrated circuits (ASICs).
The company sees solid cloud spending through 2025. While it hasn't made revenue projections for 2026, Nvidia expects IT budgets to keep growing, with AI taking up a bigger slice. Moore maintained his Overweight rating and $162 price target on the stock.
He also noted that Nvidia laid out a strong case for how it plans to tackle the challenge of large-scale AI inferencing. While some worry that efficiency improvements could slow demand, Moore argued that Nvidia's infrastructure is still a safer bet than relying on custom ASIC development.
Shares dipped slightly in premarket trading.
