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It’s time to buy Nvidia stock, according to Morgan Stanley, as the AI hype shows no signs of abating. Analyst Joseph Moore raised his shareholding from equal to overweight, saying in a note to clients Thursday that developments in AI outweigh lingering challenges in areas like gaming. “After a significant move in stocks, we are still seeing signs that [large language model] enthusiasm translates into more active spending in both the short and long term; we have focused the data too much on a positive big picture, but the narrative is too strong to be left out,” he wrote. Nvidia shares are up almost 75% as of Thursday’s close after a 50% drop in 2022. The recent rebound in semi-finished products stocks has resulted in “a small number of deals in areas with long-term upside potential,” Moore said, with Nvidia’s trailing price — up to — earnings multiple of nearly 147 times. “NVIDIA’s score is high, but not much different from its peers; and at the extreme, large investments in NVIDIA products are even bad for the rest of the computing resources, as the budget squeeze meets the high requirements for AI spending,” Moore said. “All of this makes NVIDIA relatively attractive compared to other compute-focused companies. Along with the rating upgrade, Moore raised its share price target to $304 from $255 per share, suggesting 19 percent upside from Thursday’s close. Over the next five years, he expects new opportunities for AI and machine learning to emerge in industries such as software and services. , networks and advanced driver assistance systems to drive the company’s strong growth. “While our views that NVIDIA will face a tactical performance challenge in both gaming and the data center have been largely confirmed, the rise of generational AI is a trend too big to accept. distracted by tactical considerations,” Moore said. “Stocks will continue to be hard to ignore in the challenging semiconductor environment,” said Michael Bloom of CNBC.
Credit: www.cnbc.com /
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