Shares of semiconductor giant Nvidia have had a wild ride in recent weeks. However, analysts from Morgan Stanley still believe that the stock will come out on top thanks to the large demand for artificial intelligence chips and the “flexibility” of the company’s supply chain.
Nvidia’s stock, just like the entire U.S. stock market, has been hampered by the ongoing trade war caused by President Donald Trump’s sweeping tariffs. Still, Morgan Stanley’s analyst Joseph Moore said in a recent note that he and his team consider Nvidia to be well-positioned to weather the possible challenges in the long run.
“Our view is that the microeconomic impacts for NVIDIA are fairly minimal, particularly because near-term demand remains strong and is already being mitigated; the risk is macro deterioration impacting investment financing,” Moore wrote in a note sent to clients on Thursday.
He added that the ongoing spending on AI chips, a market overwhelmingly controlled by Nvidia, and “relative supply chain flexibility” will help the company outperform “even in a higher tariff environment.”
Moore kept the “Top Pick” designation on Nvidia’s stock alongside an “Overweight” rating and a price target of $162 per share.
After tumbling as low as $94.31 per share last week, Nvidia’s stock rebounded 17.62%. It closed at $110.93 per share but still remains 19.80% down year-to-date.