Morgan Stanley Upgrades Nvidia To Overweight Ahead Of Gaming, Cloud Acceleration
As previously reported, Morgan Stanley analyst Joseph Moore upgraded Nvidia (NVDA) to Overweight from Equal Weight with a price target of $259, up from $217.
Both of Nvidia's gaming and data center segments fell short of expectations over the course of 2019, but investments made this year in the gaming business should pay off in 2020 while recent Cloud commentary indicates that the inflection in "conversational AI" is real and new Nvidia products should ease concerns about competition in the data center segment, Moore tell investors.
Although he expects a tough semiconductor environment more broadly and believes the stock is expensive on near-term earnings, Moore sees upside from here for Nvidia shares, he concludes.
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