Nvidia Well Positioned as AI Bottleneck Shifts, Morgan Stanley Says

11:12 AM EDT, 10/02/2026 (MT Newswires) -- Nvidia (NVDA) is well positioned as the artificial intelligence bottleneck shifts from semiconductor production limits to the pace of data center construction and financing, Morgan Stanley said in a note Friday. The investment bank said Nvidia's broad customer base, including hyperscalers, neoclouds, sovereign entities and enterprises, gives it flexibility as power and data center capacity tighten, while its higher tokens per Gigawatt performance could be an advantage if power becomes the key constraint, supporting a strategy of "gigawatt densification" within a smaller power envelope. Persistent agents should drive CPU demand higher, but the biggest portion of spending is still expected to be on GPUs because agentic users could generate substantially more inference tokens demand, according to the note. Morgan Stanley said it sees upside to Nvidia's fiscal 2028 revenue guidance, saying its management's forecast for about 70% year-over-year growth is supply constrained, with demand closer to 100%. The investment bank reinstated the chipmaker as its Top Pick in semiconductors, citing the Nvidia's early position in a new product cycle, powered shell constraints play into the company's strengths, and agentic AI demand, and a valuation of about 15 times fiscal 2028 earnings. Morgan Stanley has an overweight rating on Nvidia and a price target of $300. Nvidia shares were up 2.5% in Friday trading. Price: 236.71, Change: +5.85, Percent Change: +2.53