Morgan Stanley reiterated its bullishness on shares of Nvidia forward of the graphic processing unit designer’s subsequent earnings launch on Aug. 27. The financial institution maintained its obese score on the inventory, whereas elevating its price target to $206 from $200. This up to date forecast implies that shares might rise 14% from their Friday shut. Shares of Nvidia have jumped 34% this 12 months. NVDA YTD mountain NVDA YTD chart “Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so. We expect a strong quarter and outlook, but we’re a little measured on the current quarter — our optimism centers on what lies ahead,” analyst Joseph Moore wrote. Moore famous sturdy demand from Nvidia’s prospects, including that power has endured past simply the corporate’s “largest handful of spenders.” Bottlenecks on Nvidia’s provide aspect are additionally set to enhance going ahead. “Three months ago, our positive view on demand was more bullish than consensus, and our view that supply issues would get resolved were more bullish than consensus, but consensus has risen on both. But we remain more optimistic on prospects for growing share in 2025 and holding share at close to the current 85% in CY26, against both merchant and ASIC competition,” Moore mentioned. With this in thoughts, Moore raised his income estimate for the July quarter to $46.6 billion from $45.2 billion. He now believes that income for the October quarter might are available at $52.5 billion, up from his prior estimate of $51.3 billion. The analyst added that the reintroduction of the China market could be one other tailwind for Nvidia’s revenues.