NVIDIA Just Hit a New Buy Point. Morgan Stanley Raised Its Target. Where Does It End? Vandita Jadeja Wed, October 7, 2026 at 10:30 AM EDT 5 min read TSM -1.60% AVGO -1.07% MS -2.20% NVDA -0.64% AMD -1.27% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
NVDA trades within 2% of its 52-week high, earns a BUY rating, and carries a $273 price target implying 17% upside over 12 months.
Morgan Stanley's Joseph Moore holds Overweight on NVDA, which trades at 25x forward earnings versus AMD's 40x despite growing revenue at twice AMD's pace.
Vera Rubin generates $40 billion per gigawatt versus $25 billion for Blackwell, with hyperscalers set to spend $1.3 trillion on capex in 2027.
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Shares of NVIDIA (NASDAQ:NVDA) closed Friday at $233.95. That is within 1.7% of its 52-week high of $237.88, and the stock was indicated at $235.28 before the open.
The 24/7 Wall St. price target stands at $272.75 over the next 12 months, which implies 16.59% upside. The stock earns a buy rating with high confidence from our model.
Shares traded near their 52-week high last week. Morgan Stanley (NYSE:MS) analyst Joseph Moore holds an Overweight rating. The key question now is how long supply limits support the cycle.
NVIDIA is up 4.54% over the past week, 4.97% over the past month and 26.45% year to date. The stock sits 42.7% above its 52-week low.
In the fiscal second quarter, revenue reached $96.22 billion against estimates of $92.07 billion. Non-GAAP EPS of $2.22 beat the $2.09 consensus. Data Center revenue rose 117% to $89.02 billion, and third-quarter guidance calls for $108 billion.
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Management expects fiscal 2028 revenue to grow about 70% even with supply constraints. On the call, the company said "Our demand is much higher than that." NVIDIA earns about $40 billion per gigawatt on Vera Rubin, compared with $25 billion on Blackwell.
The top five hyperscalers are expected to spend $1.3 trillion on capex in 2027. The consensus fiscal 2028 EPS estimate of $15.6951 has drawn 42 upward revisions and no cuts in 30 days. The average analyst target is $327.70, and our bull case points to $318.39.
Management expects gross margins to bottom at 71% to 72% in the fourth quarter as memory costs rise. Days sales outstanding rose to 60 days from 45.
NVIDIA has invested nearly $50 billion in leading AI labs, and management admitted "some will call this circular financing." Guidance also assumes no China data center compute revenue.
Bulls have a response: price increases should raised fiscal 2028 margins to 72% to 73%, and NVIDIA computing capacity can be moved to other customers. The bear case sits at $235.18.
Advanced Micro Devices (NASDAQ:AMD) competes directly with NVIDIA in GPUs but trades at a much higher forward multiple while growing revenue at less than half NVIDIA's pace.
Broadcom (NASDAQ:AVGO) builds custom chips for the same hyperscalers at a cheaper multiple, reflecting market skepticism of AI silicon outside NVIDIA's ecosystem.
Taiwan Semiconductor (NYSE:TSM) makes Blackwell and Rubin wafers. Compared with this group, NVIDIA's premium appears justified, and our 18x forward input looks conservative.
The 24/7 Wall St. price target sits at $272.75 with a buy rating and high confidence. Supply-limited demand keeps driving earnings estimates higher.
The setup improves if Vera Rubin supply expands on schedule and weakens if memory costs push margins below guidance. Keep an eye on the November earnings report.
Looking further out, here is our model projects NVIDIA could trade, assuming current growth rates and market conditions hold.
The projections rest on NVIDIA executing its annual architecture cycle. Faster AI capex buildout could driving results above this path; a consolidation phase could pull them below. All of that hyperscaler spending has to be powered, cooled, and connected by somebody other than the chipmakers, and we rounded up seven of those suppliers in a free report here.
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