Saad Ullah
⬤ Nvidia (NVDA) is ramping up its Blackwell platform in full force, with Morgan Stanley's latest semiconductor analysis showing significant improvements in industry conditions over the past 45 days. Blackwell cabinet shipments are now fully accelerated, and the current quarter is shaping up to be one of the strongest in recent memory. Despite this momentum, NVDA stock has underperformed other AI leaders this year—a trend Morgan Stanley expects to flip as demand signals continue strengthening.
⬤ Supply-chain bottlenecks related to cabinet components have been cleared, and demand for Nvidia GPUs is surging across cloud providers, OEMs, and component makers. While some constraints remain in memory, servers, power, and data-center capacity, they're not enough to slow down GPU shipments. Jensen Huang previously mentioned at GTC that Nvidia's revenue should climb by $70–80 billion over the next five quarters, yet NVDA shares are trading roughly 10% below those levels. Morgan Stanley's data shows Blackwell tested units jumping from 400 in Q4 2024 to 1,500 in Q4 2025, with revenue units climbing from 363 to 1,461—suggesting there's still plenty of room to run.
⬤ Cloud providers increased their 2026 capex plans by $142 billion in Q3, highlighting the strong returns on Nvidia-powered AI infrastructure. ODM partners are seeing similar momentum: Quanta expects AI server revenue to double in 2026, Wistron anticipates steady sequential growth throughout the year, and Foxconn is forecasting strong double-digit growth in cabinet shipments for Q4. Downstream demand for optical modules, DRAM, and NAND is also staying elevated as the Blackwell rollout expands.
⬤ Morgan Stanley bumped up its FY2027 revenue and EPS forecasts for NVDA to $298.5 billion and $7.11, while raising its price target from $210 to $220 and keeping an "Overweight" rating. Although a higher ASIC mix next year might temporarily affect market share, the firm expects interest in alternative solutions to cool once Nvidia launches its Rubin platform. The accelerating Blackwell cycle reinforces Nvidia's leadership position and strengthens the company's long-term growth trajectory in the expanding AI hardware ecosystem.
Saad Ullah
