Morgan Stanley has raised its price targets for Nvidia Corporation (NASDAQ:NVDA) and Broadcom Inc (NASDAQ:AVGO), citing the ongoing momentum in artificial intelligence (AI).
Analyst Boosts Targets On AI Strength
Morgan Stanley’s analyst Joseph Moore reiterated the bank’s overweight rating for Nvidia, setting a new price target of $250, up from $235, representing a 41% increase from the chipmaker’s Friday closing price, reported CNBC.
Moore wrote that NVIDIA is continuing to hold a dominant share of the market and that concerns about competitive threats are "becoming overstated," though he added that it is still unclear what might shift investor sentiment.
Moore also maintained an overweight rating for Broadcom and increased the price target to $443 from $409. This new target represents a 10% rise from Broadcom’s Friday closing price. Moore highlighted Broadcom’s significant AI exposure as a positive factor and commended the company’s growth potential. He specifically mentioned Broadcom’s tensor processing unit (TPU) as a driving force.
However, Moore cautioned that this increase in TPU demand might replace other chip expectations for Broadcom, such as the Meta Platforms Inc. (NASDAQ:META) AI builds.
Dan Ives, Cramer Upbeat On Nvidia, Broadcom
The AI revolution has been a significant driver for the tech sector, with experts predicting its continued growth. Wedbush Securities Managing Director Dan Ives recently stated that “it’s Nvidia’s world, everyone else is paying rent,” underlining the company’s dominant position in the AI space.
Meanwhile, CNBC’s Jim Cramer suggested that Broadcom is poised to be the primary beneficiary of a potential deal between Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta. The recent price target hikes by Morgan Stanley further underscore the positive outlook for these chipmakers, driven by the AI sector’s continued growth.
Price Target: On a year-to-date basis, Nvidia stock and Broadcom stock surged 27.96% and 73.70%, respectively.
Benzinga's Edge Rankings place Nvidia in the 93rd percentile for quality and the 98th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
