Morgan Stanley Reaffirms NVIDIA as Top Pick Amid Soaring Chip Demand

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Investors Should Keep an Eye On. On July 30, Morgan Stanley reiterated the stock as “Overweight” and raised its price to $200 per share from $170.

The analyst noted robust demand for Blackwell chips, which is outpacing supply. Even though supply constraints still persist, the bottleneck will likely ease in the second half of the year. This will, in turn, likely boost earnings. NVIDIA remains Morgan Stanley’s top semiconductor pick.

“We think that the increase in enthusiasm for AI semis is justified by long term strength in the business, and raise targets across the board — though some near term constraints remain. PTs higher across the board, stay OW NVDA AVGO ALAB.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, providing high-performance GPUs and platforms that power data centers, autonomous vehicles, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Must-Watch AI Stocks on Wall Street and 10 AI Stocks Making Waves on Wall Street

Disclosure: None.