Morgan Stanley is a sudden entry in the middle of chaos that caused low blood sugar investors. Nvidia being always the superior choice For them, why? Well, because when the world begins to build digital empires fueled by AI, you do not doubt the company that sells the bricks.
As the whole technological sector still vacillates the renewed threat of the prices of Donald Trump, that does not prevent Morgan Stanley from thwarting Nvidia Like his number one choice on the market. The company notes that even a general stock up The price does nothing to the performance of this long -term flea manufacturer due to demand for demand, flexible supply chains and a robust AI market.
Consequences of prices on the chip
President Trump’s so-called “Liberation Day” prices offered a temporary refuge Semiconductors. Morgan Stanley cannot exclude the possibility that chips have taken commercial policies in the future. However, if prices are implemented on fleas, we think that quite minimal “consequences“Probably come the way to Nvidia, taking into account its request for fleas, market strength and flexibility in supply chains and in global manufacturing.
Morgan Stanley analysts said ,,
“Nvidia remains our first choice with the undeniably positive GPU data points and a clearly hungry inference market for GPUs through several hyperscalers. We believe that sustained AI expenses and the relative flexibility of the NVDA supply chain will help them surpass, even in a higher tariff environment. “
The demand surpasses the supply
Business reported Tripometric revenues of $ 39.2 billion in the last financial year with annual growth of 78%. Jensen Huang, CEO of Nvidia underlines that the request of the last Blackwell chips is “crazy”. The request for Nvidia chips is increasing, according to Morgan Stanley. This is mainly due to the “tight” capacity for models of learning large languages in order to create new predictions and inferences. Such popularity also stimulates demand for all types of Nvidia products, including older as Hopper. Morgan Stanley pointed out that most of the industry contacts do not care about the threat of prices because they do not care about the intensity of demand.
Morgan Stanley analysts said,,
“Our industry contacts are generally not concerned by prices, because demand is strong, Blackwell is exhausted and demand is quite insensitive to prices.
North American supply chain
Contact with prices can also be reduced by an increasing North American supply chain for NVIDIA, taking into account the recent agreement of the United States Canada and Mexico. Morgan Stanley analysts believe that most components of Nvidia GB 200 supercomputer The platform is probably already in North America. This strategy can help avoid pricing risks, linked to Chinese manufacturing.
According to reports, the production of GB 200 in Mexico is stimulated by Hon HaiOne of the main partners. Although ZT systems and other suppliers can be installed inside American borders. Morgan Stanley too reported An increased production capacity for Bianca’s advice in Mexico, which is another component of the platform.
Market volatility continues
To say that Nvidia’s actions have been interrupted by wider market oscillations would be an understatement. THE The stock dropped by 14% After Trump’s April announcements on prices, during which the S&P 500 fell only 10%. Morgan Stanley Analysts always believe That the drop in action has more to do with the general feeling of macroeconomic uncertainty than something that is specifically lacking in its fundamental principles. The bank said,,
“That said, Nvidia seems among the most protected companies and will have a minimal direct impact. But the type of recession is also important, because the demand for GPU remains resilient – and we will say that the risks that come more on the financial side than from anywhere else.”
Regardless of the panic of the markets, how strong the titles can become and how many prices are launched by politicians like the confetti, the fundamentals of Nvidia have not changed. Morgan Stanley does not just make a daring call, they speak hard about where smart money looks like prices in the storm. Volatility can be brief, but domination reigns forever with the right type of strategy.