Nvidia will profit as long as businesses are intrigued by generative artificial intelligence.

Investors anticipate that Nvidia’s graphics processing units, or GPUs, will continue to be the most widely utilized computer chips for gigantic big language models that can produce attractive prose, as evidenced by the company’s shares closing up more than 7% on Monday.

Following the company’s most recent earnings report, which included a more optimistic projection, Morgan Stanley reiterated in an analyst note on Monday that Nvidia remains a “Top Pick.”

With the chip giant’s shares up about 200% so far in 2023, Nvidia, now valued at over $1 trillion, outperformed all other businesses during this year’s tech resurgence after a market crash in 2022.

Even if supply issues and continued worries about the health of the overall economy contributed to a little more than 10% decline in Nvidia share price this month, Morgan Stanley analysts believe the company will eventually prosper.

The analysts concluded that the situation was “very positive,” adding that “the upper end of the buy side consensus has been reined in” and that “October numbers are entirely gated by supply.”


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