Nvidia Stock News and Forecast: NVDA advances on Morgan Stanley upgrade

Morgan Stanley upgraded NVDA to Overweight.
Investment bank raised price target to $304.
AI megatrend should cause heavy demand for H100 chips.
Nvidia stock breaks above $260 resistance.

Clay Webster FXStreet

Nvidia (NVDA) stock moved ahead in contrast to the market sell-off on Friday morning. NVDA shares rose 1.8% to $260, its highest price in nearly a year, after Morgan Stanley upgraded shares of the chip designer due to overwhelming optimism regarding demand for its chips in light of the artificial intelligence (AI) "megatrend".

The market was less excited though as negativity surrounding the bank-led bailout of First Republic Bank (FRC) and the quadruple witching day led futures to drop. NASDAQ futures were a bit better than its counterparts at -0.3%, while Dow futures tanked -0.7%.

Nvidia stock news: Analyst places NVDA price target at $304

Morgan Stanley analyst Joseph Moore surprisingly changed his rating from Equal-weight to Overweight. This is surprising since Nvidia stock has already run up more than 90% in the past six months. Moore also raised the Nvidia price target to $304 from the prior $255 – a 19% raise.

Moore's reasoning targeted Nvidia's central place in the future of artificial intelligence computing. Arguing that the semiconductor industry's weakness in gaming and data center would largely be forgotten by the second half of the year, Moore said the AI megatrend was likely to become an extremely large part of Nvidia's growth story over the next few years.

"The high capital intensity of these [AI] workloads, particularly on the training side, is now a major part of the calculus for the largest companies in technology, with NVIDIA having dominance in the training market that is likely to persist for several years even with a relatively fixed number of model developers, model complexity plus multiple languages should still drive 3-5x growth in training over 5 years," Moore wrote.

Already on Monday Microsoft (MSFT) unveiled its new AI virtual machines, which allow customers to test AI protocols without resorting to purchasing the extremely expensive and large amount of hardware required. Microsoft utilizes Nvidia's H100 Tensor Core GPUs, as well as its Quantum-2 InfiniBand networking architecture.

CEO Jensen Huang, who has been championing Nvidia's edge on the future of AI computing for years, will be among the major speakers at next week's GTC Nvidia conference for developers. The conference runs from March 20th to 22nd, and the market is expecting more new announcements to come from the event.

Nvidia stock forecast

Nvidia stock has been able to overcome long-term resistance at $260. This resistance stems from all the way back in November of 2021 and again in early 2022. The latter time period also gave rise to the importance of $266 and $283.50. Both of those price levels worked as resistance one year ago during separate range highs. Bulls will now attempt to reach both levels, but first they will need to contend with an overheated Relative Strength Index (RSI). NVDA stock is back above the 70 overbought threshold on the daily RSI, like it was in late January and early February. Expect a pullback at some point in the next two weeks. Nvidia traders will discover long-term support at $225.

NVDA daily chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

GBP/USD bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD looks apathetic around 1.1530

EUR/USD reverses Wednesday’s downtick and trades with modest gains in the 1.1530 region following the end of the NA session on Thursday. The pair’s tepid advance comes on the back of the absence of clear direction in the US Dollar despite tensions from the Middle East appear far from alleviated. Later on Friday, investors are expected to monitor the the releases of another revision of GDP figures in the Euroland, US Retail Sales and the preliminary U-Mich gauge.

Gold loses the grip, recedes toward $4,350

Gold extends its intraday pullback on Thursday, retesting the $4,350 zone per troy ounce, or three-day troughs. Meanwhile, the yellow metal continues to monitor developments from the Middle East as well as bets surrounding the potential Fed’s rate path.

Ethereum Price Forecast: Fidelity plans to add staking to ETH ETF amid yield debate

Asset manager Fidelity has filed with the US Securities and Exchange Commission (SEC) to permit staking in its Ethereum (ETH) exchange-traded fund (ETF), the Fidelity Ethereum Fund (FETH), which holds over $898 million in net assets.

Why credit markets aren’t pricing $570B of AI debt

Forecasts put global artificial intelligence related debt issuance near $570 billion this year, with roughly $236 billion of it priced by the end of May at four times the prior year's pace. Data centre securitisation alone has gone from about $4 billion a year through 2022 to roughly $10 billion in each of 2023 and 2024, and then $27 billion in 2025.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.