Morgan Stanley Raises Nvidia Price Target to $285, Citing Blackwell Power Efficiency
Morgan Stanley raised its price target on Nvidia to $285 from $260 after increasing its CY27 (FY28) EPS estimate to $12.99 from $10.05. The bank said it is applying a roughly 22-times multiple, down from about 26 times previously, to align more closely with the broader market, adding that Nvidia's high market share and gross margins leave limited room for near-term multiple expansion.
Morgan Stanley said hyperscaler capital spending to build a 1-gigawatt data center with Nvidia's current-generation Blackwell GPUs could be as much as about twice the cost of current-generation custom ASICs such as TPU and Trainium. Even so, it argued that power efficiency is critical and estimated Blackwell's compute performance per watt is roughly 2 times to 8 times ahead of custom ASICs.
From the sources (2 posts)
@firstadopterMorgan Stanley: $NVDA "We estimate hyperscaler capex to build a 1 GW datacenter with current-gen NVDA GPUs (Blackwell) is up to ~2x the cost of current-gen custom ASICs (TPU, Trainium)...but compute power efficiency matters, and this is whe
@firstadopter$NVDA "Our prior PT of $260 was based on ~26 our MW CY27 (FY28) EPS estimate of $10.05. We are lowering our multiple assumption to ~22x, in-line with the broader market and a discount to compute semis peers (AMD/AVGO/INTC) as high marketsha