Morgan Stanley Forecasts Strong Price Appreciation for NVIDIA (NASDAQ:NVDA) Stock

Key Points

• Morgan Stanley raised its price target on NVIDIA to $250 (from $235) and maintained an "overweight" rating, signaling roughly a 41.98% potential upside from the prior close.
• Other brokerages have also lifted targets and ratings, leaving NVIDIA with a consensus analyst rating of "Buy" and an average price target of about $258.65.
• NVIDIA posted a strong quarter, beating EPS and revenue estimates with revenue up 62.5% year-over-year and a net margin of 52.41%, while the stock has traded between a 12-month low of $86.62 and high of $212.19.

NVIDIA (NASDAQ:NVDA - Get Free Report) had its price target hoisted by investment analysts at Morgan Stanley from $235.00 to $250.00 in a research note issued on Monday,MarketScreener reports. The brokerage presently has an "overweight" rating on the computer hardware maker's stock. Morgan Stanley's target price points to a potential upside of 41.98% from the stock's previous close.

A number of other brokerages also recently issued reports on NVDA. BNP Paribas Exane boosted their price objective on shares of NVIDIA from $240.00 to $250.00 and gave the company an "outperform" rating in a research report on Tuesday, November 18th. Bank of America raised their target price on NVIDIA from $235.00 to $275.00 and gave the stock a "buy" rating in a research report on Wednesday, October 29th. Deutsche Bank Aktiengesellschaft boosted their price objective on NVIDIA from $180.00 to $215.00 and gave the company a "hold" rating in a research note on Thursday, November 20th. KeyCorp boosted their price target on shares of NVIDIA from $250.00 to $275.00 and gave the stock an "overweight" rating in a research note on Thursday, November 20th. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $240.00 price objective (up from $210.00) on shares of NVIDIA in a research note on Friday, October 31st. Five analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, NVIDIA currently has an average rating of "Buy" and a consensus price target of $258.65.

NVIDIA Price Performance

NVIDIA stock opened at $176.08 on Monday. NVIDIA has a 12 month low of $86.62 and a 12 month high of $212.19. The business's 50 day simple moving average is $186.90 and its 200 day simple moving average is $170.71. The company has a market cap of $4.28 trillion, a price-to-earnings ratio of 49.78, a PEG ratio of 1.49 and a beta of 2.11. The company has a current ratio of 4.21, a quick ratio of 3.60 and a debt-to-equity ratio of 0.08.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 earnings per share for the quarter, topping analysts' consensus estimates of $1.23 by $0.07. The business had revenue of $57.01 billion for the quarter, compared to analyst estimates of $54.66 billion. NVIDIA had a net margin of 52.41% and a return on equity of 101.74%. NVIDIA's revenue was up 62.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.81 EPS. NVIDIA has set its Q4 2026 guidance at EPS. Sell-side analysts forecast that NVIDIA will post 2.77 EPS for the current year.

Insider Transactions at NVIDIA

In other news, CEO Jen Hsun Huang sold 75,000 shares of the stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $177.57, for a total transaction of $13,317,750.00. Following the completion of the transaction, the chief executive officer directly owned 72,248,366 shares in the company, valued at approximately $12,829,142,350.62. This represents a 0.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Mark A. Stevens sold 350,000 shares of the firm's stock in a transaction that occurred on Friday, September 19th. The shares were sold at an average price of $176.39, for a total transaction of $61,736,500.00. Following the completion of the transaction, the director directly owned 7,399,803 shares of the company's stock, valued at $1,305,251,251.17. This represents a 4.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,177,203 shares of company stock worth $570,171,004 in the last ninety days. Insiders own 4.17% of the company's stock.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors have recently modified their holdings of NVDA. Kingstone Capital Partners Texas LLC raised its holdings in NVIDIA by 267,959.7% in the second quarter. Kingstone Capital Partners Texas LLC now owns 382,373,765 shares of the computer hardware maker's stock valued at $64,976,521,000 after acquiring an additional 382,231,120 shares in the last quarter. Norges Bank bought a new stake in NVIDIA during the 2nd quarter valued at $51,386,863,000. Nuveen LLC bought a new position in NVIDIA in the 1st quarter valued at about $15,089,414,000. Goldman Sachs Group Inc. increased its stake in NVIDIA by 123.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 187,995,213 shares of the computer hardware maker's stock valued at $20,374,921,000 after buying an additional 103,889,872 shares during the period. Finally, Capital Research Global Investors lifted its stake in shares of NVIDIA by 16.1% in the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock worth $30,855,564,000 after acquiring an additional 22,896,705 shares during the period. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Company Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.

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