Morgan Stanley Raises Nvidia Price Target to $285 – Analysts Expect Strong Quarterly Results

Morgan Stanley raised Nvidia's price target on May 19, 2026 from $260 to $285 and simultaneously confirmed the Overweight rating for the chipmaker. From the closing price of $222.32 at that time, this represented an upside potential of approximately 26 percent. The adjustment was made ahead of the quarterly earnings release, which analysts ranked as one of the most important quarterly reports of the year.

Increased Revenue and Profit Forecasts for First Fiscal Quarter

Morgan Stanley significantly raised its own forecasts for the first fiscal quarter of 2026. Analyst Joseph Moore now expects revenue of $79.264 billion – an increase from the previous $78.25 billion. For earnings per share (EPS), the investment bank is forecasting $1.72, up from the previous $1.69.

Moore is projecting the typical pattern of a beat-and-raise quarter: a revenue beat versus consensus expectations of approximately $3 billion, as well as guidance that could exceed consensus estimates by approximately $4 billion.

Supply Chain Strategy as Competitive Advantage

Morgan Stanley cites the company's supply chain strategy as the central argument for its positive assessment. According to analyst Moore, Nvidia secured production capacity early and is thus in a significantly better position than competitors. The investment bank estimates the company's purchase commitments – order and delivery commitments – at approximately $95 billion. This allows Nvidia to secure a large portion of planned shipments for the next 18 months.

The exploding demand for AI chips and data center hardware in the wake of the global AI boom is cited as the main driver for the increased revenue and profit forecasts.

Broad Analyst Consensus for Further Price Potential

Morgan Stanley's assessment is not isolated. J.P. Morgan analyst Harlan Sur raised his price target in May 2026 from $265 to $280 and confirmed his buy rating. Analysts saw up to 30 percent price potential ahead of the quarterly earnings in August 2026, based on price-to-earnings ratios multiplied by forecasts for fiscal year 2028.

As early as February 25, 2026, Morgan Stanley had confirmed the Overweight rating and a price target of $250.00. The continuous raising of price targets reflects increased expectations for the chip manufacturer's business development.

Strong Stock Performance Year-over-Year

In the twelve months before May 2026, Nvidia stock gained approximately 66 percent. The positive stock price development was driven by sustained demand for AI hardware, for which Nvidia is considered the leading provider of high-performance graphics processors.

The upcoming quarterly earnings are being watched by market observers with particular anticipation, as they could provide insight into the further development of AI investments and the company's competitive position.