Morgan Stanley Lifts Nvidia Price Target 14% to $200 on AI Surge, AMD and Broadcom Also in Spotlight

Morgan Stanley just threw some fresh fuel on Nvidia's (NASDAQ: NVDA) rally by raising its price target to $200, up from $170. That's a solid 14% bump from Tuesday's close-a signal that the firm sees even more room to run for the chipmaker riding the AI wave.

Analyst Joseph Moore, keeping his "overweight" stance on Nvidia, calls the company's AI demand "exceptional" across the board. According to him, data from Morgan Stanley's checks points toward increasing customer appetite for compute power, especially around inference workloads-that's the AI muscle flexing during real-time data analysis and decision-making.

Looking ahead to the second half of the year, Moore flagged the upcoming Blackwell GPU rollout as a potential game-changer. This next-gen tech isn't just about processing chips; it's also about connectivity, networking, and memory improvements. Morgan Stanley bumped up price targets across the AI semiconductor sector, expecting solid momentum to continue.

Nvidia's stock isn't flying solo-Advanced Micro Devices (NASDAQ: AMD) has actually outpaced it this year, rallying 47% so far. Although Moore maintains an "equal weight" rating on AMD, he boosted its price target from $121 to $185, which suggests around 4% more upside. The key here? A reopening of product shipments to the China market, something AMD and Nvidia are both poised to benefit from despite the export restrictions that triggered a $5.5 billion quarterly charge for Nvidia in April.

Besides these two giants, Moore also tipped Broadcom (NASDAQ: AVGO) as a beneficiary of robust AI spending, though the uplift there is expected to be felt more on the networking front than on processors. Broadcom's price target was revised upward from $270 to $338, implying an upside of more than 13%, with shares having gained over 28% this year.

The semiconductor sector's second half looks like it's gearing up for a sprint, powered by AI demand and new product cycles. Whether this momentum holds as broader macroeconomic factors gallop alongside remains the open question.