07:07 AM EDT, 06/16/2023 (MT Newswires) -- NVIDIA (NVDA) was named Morgan Stanley's "top pick" in the semiconductor sector, taking the title from Advanced Micro Devices (AMD), as Morgan Stanley's analysts said NVIDIA is the only semiconductor company in a position to beat expectations and raise guidance this year.
Morgan Stanley also raised its price target on NVIDIA's shares to $500 each from $450. This moves the target farther above the stock's recent trading level as Morgan Stanley kept its investment rating on the shares at overweight.
NVIDIA's stock "should trade at a premium to peers given the higher probability of upward revisions near term, but the multiple premium vs. those peers has actually narrowed meaningfully," the analysts said.
Morgan Stanley's analysts described NVIDIA as having "the cleanest story" in artificial intelligence or AI hardware. They "believe it continues to deserve more consideration from investors looking for AI exposure, even if the current valuation construct and [year-to-date] stock return already reflects expectations that are higher than secondary or tertiary players," the analysts added.
NVIDIA has an average investment rating of outperform among analysts polled by Capital IQ, with price targets ranging from $206 to $710.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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