Morgan Stanley analysts said Nvidia will maintain its position as the AI hardware king, raising their 12-month price target for the stock. (Credit: Getty Images) #nvidia #morganstanley #stockmarket.
Importantly, the company highlighted amid its results that related demand for AI was still robust. Morgan Stanley also reiterated that direct beneficiaries of AI, such as Nvidia, continue to see strong order flow, adding that it's possible for AI strength and economic recovery to coexist.
Nvidia shares have produced a total return of 1,360% in the past five years (as of Jan. 16). This impressive gain would've turned a $1,000 starting capital outlay into $14,590 today.
Nvidia (NVDA) stock has clearly been Wall Street's biggest AI winner, but Morgan Stanley feels it has much more room to run. Analyst Joe Moore just bumped his price target from $250 to $235, a massive 38% upside from Nvidia's current price at $181.46.
Despite the company's size-related challenges, Nvidia stock is a buy now. None of the challenges it faces changes the fact that it's the leading company in the critical AI accelerator market.
You know that I always say own NVIDIA, don't trade it. Now, sometimes, like right now, it's difficult because the stock appears stuck in a rut. Other times, it's bountiful. But NVIDIA's a stock that's not meant to be schnitzeled.
From $5,000 to nearly $1 million in a decade
This amount assumes you reinvested the modest dividends Nvidia pays.
Asset managers such as BlackRock and Vanguard are the largest owners of Nvidia stock. These companies hold Nvidia stock in mutual funds and ETFs on behalf of their clients. The largest shareholders among individual investors are company insiders and board members like founder Jensen Huang.
Nvidia's upcoming Rubin architecture offers three times the performance of Blackwell Ultra GPUs. The stock trades at a forward price-earnings multiple of 24x. A $300 per share target implies a valuation exceeding $7.4T by 2026.
If you invested 20 years ago:
Percentage change: 492.4% Total: $5,924.
A gain of over 22,000%
If you had invested $10,000 in Nvidia 10 years ago and held on through all the flat, rocky, and exhilarating years that followed, your current investment would be worth well over $2.2 million.
If it wasn't already, Nvidia has secured its position as the standard for scaling AI systems. Investors could do well to own shares now as its growing ecosystem will result in growing sales and profits for years to come. It might just be the best stock market option for those looking to retire as millionaires.
Bill Gates NVIDIA Corp
The investor sold all their shares in Q4 2023 and doesn't own any shares in NVIDIA anymore.
Morgan Stanley is a member of SIPC. SIPC protects client net claims up to $500,000, of which up to $250,000 may be uninvested cash. Note that SIPC coverage does not protect investors against securities fraud, as it only protects client assets in the event of broker-dealer insolvency.
And that's why the Oracle of Omaha doesn't own the asset. “If you told me you own all of the bitcoin in the world and you offered it to me for $25, I wouldn't take it because what would I do with it?” he asks. “I'd have to sell it back to you one way or another. It isn't going to do anything.”
NVIDIA stock has been on a great run. But today, many billionaire investors think it's time to look at other stocks. Cheap, competitive and fast-growing, Brookfield is one such stock that is very much worth the look. No wonder billionaire investors are interested.
Warren Buffett Doesn't Own Nvidia — But His 3 Picks Are Better. It's tempting to look enviously at investors who own Nvidia (NVDA): The AI giant's value just jumped to $4 trillion. But Warren Buffett can take comfort in the fact that he's doing even better on some of his S&P 500 picks.
With 76-78% of its workforce now millionaires, nearly half worth more than $25 million, and at least six known billionaires among its leadership, the company stands as proof that going long on the right rocket ship can be more lucrative than founding your own company.
Wall Street analysts anticipate 40% upside (on average) in Nvidia stock, which makes it the best trillion-dollar stock to buy right now. Nvidia dominates the market for data center GPUs, and it has substantial opportunities in self-driving cars and autonomous robots.
Considering Wall Street's average estimate of $213 billion in annual revenue for 2026, a $6 trillion market value would result in a price-to-sales ratio of 28 -- a level that's very reasonable for Nvidia.
NVDA's share price has far outpaced earnings growth, compressing profitability multiples and creating a potential value trap for new investors. Declining forward multiples may appear attractive, but high valuation leaves little margin for error if growth rates falter.
Nvidia stock, including dividends, has returned 1,350% over the last five years through Sept. 18. That performance trounced the approximately 115% total return of both the S&P 500 and Nasdaq Composite indexes. That means your initial $10,000 investment in Nvidia would have grown to over $145,000.
Nvidia is forecast to deliver impressive growth yet again in 2026. Nebius Group should put up remarkable growth this year. The Trade Desk is set to bounce back in 2026.