Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - The fear of the AI bubble popping is starting to spook investors after such a long tech rally. However, Morgan Stanley is flipping the script, projecting that this positive trend is gonna stay strong all the way through 2026.
Key Takeaways
- Morgan Stanley shuts down AI bubble rumors, predicting solid growth until 2026.
- NVIDIA Corporation and Broadcom remain the top picks for your portfolio.
- Nvidia’s price target is set at US$250 with a potential upside of 32 percent.
Analyst Joseph Moore emphasizes that growth visibility for this sector remains crystal clear through 2027. According to Morgan Stanley’s report, the next leg of growth will heavily favor memory stocks and factory utilization.
The investment bank points to Nvidia and Broadcom Inc. as the main characters for investors right now. Besides these two giants, smaller players like Astera Labs also made it onto the "buy" list.
Nvidia remains the undisputed king of the market, with a market cap now smashing through US$4.5 trillion. This success is fueled by massive demand for high-performance processors to train AI models.
The company just announced the general availability of the Blackwell RTX PRO 5000 72GB chip. This new beast offers a 50 percent memory boost compared to the previous model, perfect for training even bigger models.
Nvidia’s fiscal Q3 report shows Data Center revenue skyrocketing 66 percent year-on-year. This segment contributed nearly 90 percent of the company’s total revenue, which hit US$57 billion.
Moore highlights the Rubin product cycle as the most critical factor in the semiconductor industry this year. The launch of this tech is expected to extend Nvidia’s lead and keep their pricing power strong.
Nvidia’s current valuation is still seen as reasonable, considering the 2027 growth numbers that keep moving up. Moore gives a price target of US$250, indicating a potential 32 percent gain in the next 12 months.
Reference:
- TipRanks, Morgan Stanley Picks NVDA, AVGO, and ALAB as Top Chip Stocks for 2026. Accessed on December 24, 2025
- Featured Image: Shutterstock
Disclaimer
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