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<Research>M Stanley: Nvidia Outperformance Not Enough
Recommend 2 Positive 5 Negative 7 |
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The market reaction to Nvidia’s (NVDA.US) 4FQ earnings reflected performance in line with consensus, Morgan Stanley said in a research report. However, the broker cautioned that following recent pullbacks, this positive outcome may not suffice to sustain investor confidence in Asian artificial intelligence (AI) supply chain stocks, particularly as the AI narrative increasingly shifts towards applications. There is skepticism in the market regarding Nvidia’s earnings release, asserting that merely exceeding profit forecasts and guidance is no longer sufficient for the company. Morgan Stanley argued that volatility in the AI supply chain is no longer driven solely by the fundamental dynamics of AI chip demand but is increasingly influenced by the conclusion of the infrastructure phase and recent market concerns over data center spending. While supply-demand imbalances may persist, the future price performance of AI supply chain stocks will hinge on sustained accelerating revenue growth projections for these companies. Morgan Stanley outlined its preferred AI-related stocks, expressing optimism about Nvidia (NVDA.US), Samsung Electronics (005930.KS), TSMC (2330.TT), Hon Hai Precision (2317.TT), Foxconn Industrial Internet (601138.SH) and Zhongji Innolight (300308.SZ). The broker assigned an Overweight rating to Nvidia with a target price of US$152 and an Overweight rating to TSMC with a target price of NT$1,388. AAStocks Financial News |
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