Nvidia Set for Breakout Quarter as Morgan Stanley Sees Surge in Blackwell Demand

Nvidia appears to be heading into a powerful growth phase as its next-generation Blackwell platform gains momentum, according to a new outlook from Morgan Stanley. The investment bank said market conditions have “inflected for the better in the last 45 days,” setting the stage for what it expects to be Nvidia’s strongest quarter in recent periods. In response to improving trends, Morgan Stanley raised its price target for NVDA to $220 from $210 while maintaining its Overweight rating.

Analyst Joseph Moore noted that Nvidia’s stock performance has been solid but has trailed other major artificial-intelligence names. He pointed out that rising enthusiasm around custom ASIC solutions and expanding growth expectations for AMD have drawn investor focus away from Nvidia in recent months. Despite that shift, Morgan Stanley stressed that Nvidia’s Blackwell architecture “remains the AI chip of choice,” and early indicators for its Vera Rubin platform are described as “VERY strong.” The firm acknowledged growing competitive excitement in the AI semiconductor space but said those developments reflect both real progress and the scale of the overall market opportunity.

Morgan Stanley expects a clear acceleration in Nvidia’s performance, citing industry checks that show “material acceleration” now that the company has resolved prior rack-related bottlenecks. Demand for Nvidia hardware continues to strengthen, and the bank now believes growth limitations are tied more to supporting infrastructure—such as server capacity, memory, storage, and available power—rather than Nvidia’s own supply chain.

The report also highlighted comments from CEO Jensen Huang, who suggested that revenue expectations for the coming five quarters should be revised upward by $70–$80 billion. Morgan Stanley raised its own estimates by $22 billion, yet noted Nvidia’s stock remains about 10% lower than it was following Huang’s guidance. The firm sees this gap as evidence of a disconnect between investor expectations for Nvidia and the broader AI ecosystem, arguing that demand signals from customers and suppliers point to significantly faster growth than current market consensus anticipates.