Nvidia Remains Morgan Stanley's Top Semiconductor Pick Despite Valuation

Dow Jones02:46

1444 ET - Nvidia remains a top semicondcutor pick for Morgan Stanley even despite the high market cap and underperformance in the peer group, analysts write in a note following investor meetings with company executives. Even though artificial-intelligence hyperscalers, currently representing about half of data-center revenues, are looking toward custom silicon alternatives, Nvidia "will retain a large portion of the business," and there should be growth in both categories, they write. Neocloud, industrial, and sovereign data-center demand also remains strong, they add, while Vera Rubin chips should be shipped on schedule. "Our conviction remains high," the analysts write. "To be sure, the multiple is likely constrained by the large market cap and index weighting, but in our view the value disparity will revert over time." Shares gain 3.7%, to $210.26. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 10, 2026 14:46 ET (18:46 GMT)

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