Buy NVIDIA Stock Now or Regret Later? Morgan Stanley’s Insider Story on NVIDIA

in the fiscal second quarter of 2025 Nvidia impressively reported revenue of 30.4 billion showcasing a significant 122% year-over-year increase surpassing wall Street's forecast of 28.75 billion this robust growth highlights nvidia's effective leverage of its Ai and data center GPU Technologies the company also reported earnings of 68 per share exceeding the expected than 6 4 cents per share reflecting its continued profitability despite substantial investments in growth areas despite these strong financial results Nvidia stock experienced a surprising 7% drop in after hours trading this decline underscores the high expectations set by the market and suggests a sensitivity to even slight perceived risks or underperform relative to Future growth forecasts in terms of forward-looking statements Nvidia has projected a promising revenue of $16 billion for the upcoming quarter well above the consensus estimate of$ 12.42 billion however this optimistic guidance still fell short of alleviating investor concerns over the lofty expectations leading to near-term challenges in earnings momentum people focused in on the gross margin and that they guided to a second half of the year uh gross margin of 75% whereas uh they previously came in in the last quarter at around 78% % um I think it's entirely due to the to the the the development uh and the production of the Blackwell chip which is obviously understandable but um Street has a high bar I think I think we'll have to see though how the stock actually opens and trades tomorrow in the US because it reminds me of the case where Apple stock was down the day of the uh of the WWDC a few months ago in June and then people thought it was a big disappointment what's what's so special about Apple intelligence and then suddenly the next day and and for a couple of days after that the stock rallied 10% I think the same thing could happen here with Nvidia adding a layer of confidence Nvidia announced a $50 billion share repurchase authorization signaling Management's belief in the company's undervaluation and its positive outlook for future growth such BuyBacks often bolster investor sentiment by suggesting that the company's leaders see current stock prices as a good investment from an analyst perspective Morgan Stanley remains optimistic about nvidia's prospects Joseph Moore from Morgan Stanley highlights that concerns regarding the delay in the Blackwell GPU due to design flaws are overstated he points out that significant impacts from Blackwell are not expected until the January quarter with initial lower yield volumes appearing in the October quarter more also notes that demand for nvidia's existing Hopper GPU h200 is exceptionally strong indicating robust business fundamentals moreover Nvidia is witnessing strong demand for its H20 GPU a modified Hopper version to comply with export standards to China with expected revenues from this model projected to surpass $10 billion in the next three quarters yeah and of course after the call uh Jensen hang actually speaking in an interview saying next year we'll be great Supply will continue to improve each quarter so do you see this uh dip after hours price action as a buying opportunity I do I I think uh I think he seemed genuinely surprised that um you know the stock seemed to sell off after hours or some of the some of the folks interviewing him after the earnings call um seemed to be pressing him when he was pointing to the fact that uh there were you know it's a good thing um that the the Blackwell delays were not as serious as were feared in some of the press reports a few weeks ago uh he he spoke to the fact that that they would be producing and shipping in the fourth their fourth quarter um these chips and they would it would be producing and adding billions of dollars in nvidia's fourth quarter um and there were other signs uh in in their businesses uh that things were going well software uh continues to be very important part of their story networking is a very important part of their story all healthy signs so I do think it it is a buying opportunity on this initial dip um you know in the after hours this demand exemplifies nvidia's ability to adjust its product offerings to meet diverse Global Market needs effectively overall the market sentiment around Nvidia remains positive the company holds a strong byy consensus rating from analysts with a potential 19% gain projected over the next 12 months Morgan Stanley has set a price target of 14 4 for NVIDIA suggesting a 12% potential upside based on the company's strong demand forecasts strategic management of product delays and key positioning in the AI Hardware Market in conclusion despite the recent stock volatility and minor product setbacks nvidia's growth narrative remains strong the company is well positioned in the AI and data center sectors supported by a pipeline of innovative products and robust demand nvidia's management demonstrates confidence in its trajectory with substantial share BuyBacks reinforcing the belief in its value proposition thus buying Nvidia stock NOW is advised by analysts like Morgan Stanley who view the recent dip as a potential investment opportunity rather than a cause for alarm the ongoing positive outlook suggests that delaying investment could result in missing out on substantial growth as Nvidia continues to lead in high-tech markets