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Nvidia stock dropped in Tuesday trading. The chip maker’s shares are in a relative lull but Morgan Stanley analysts still see it as the best play on demand for chips to power artificial-intelligence.
shares fell 1.3% to $122.67. The stock closed up 0.6% on Monday but is down from recent intraday highs of more than $140.
Nvidia is set to be charged by the French antitrust regulator for allegedly anticompetitive practices, Reuters reported Monday, citing people with knowledge of the matter. Nvidia didn’t immediately respond to a request for comment on the report early Tuesday.
Nvidia has built a dominant position in providing chips to train artificial-intelligence models. The next test for Nvidia is the first shipments of its next-generation Blackwell chips, expected in the second half of this year.
“It is clear that the market is at the tail end of the Hopper cycle, and the frothiness and visibility is lower than it was—and given the enthusiasm…for Blackwell, lower than it will be,” wrote Morgan Stanley analyst Joseph Moore in a research note.
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Moore raised his target price on Nvidia to $144 from $116, while keeping an Overweight rating on the stock.
That price target is lower than some other analysts, with Nvidia having already risen 151% so far this year through Monday’s close. That compares with a 15% rise in the
index and a 19% rise in the
over the same period.
“We aren’t pounding the table at these levels given the sharp appreciation since the last earnings report, but this remains the most compelling narrative in the AI semis [semiconductor] space, and as we transition from H100 to H200 and then Blackwell, visibility and backlog will improve materially,” Moore wrote.
Among other chip makers,
was up 4.2% and
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gained 0.8%.
Write to Adam Clark at adam.clark@barrons.com