Morgan Stanley has raised its price target for NVIDIA (NVDA, Financial) by 6% to $170, maintaining an "overweight" rating. NVIDIA's revenue for the quarter ending April hit $44 billion, a 12% sequential and 69.2% year-over-year increase, surpassing both market expectations of $43.349 billion and Morgan Stanley’s estimate of $42.213 billion.
Data center revenue stood at $39.112 billion, gaming at $3.763 billion, and professional visualization at $509 million. Automotive revenue was $567 million, while OEM and other segments generated $111 million. Although gross margin was 60.5%, excluding H20 inventory costs, it reached 71.3%, aligning with Morgan Stanley's expectations.
NVIDIA’s non-GAAP EPS was $0.81, or $0.96 excluding H20 impacts, slightly below market expectations of $0.93 but above Morgan Stanley's estimate of $0.71. Looking ahead, NVIDIA forecasts July quarter revenue around $45 billion, below market consensus of $47.948 billion but above Morgan Stanley’s estimate.
For fiscal 2026, the firm's revenue forecast is revised from $190.818 billion to $198.821 billion, with non-GAAP EPS increasing from $4.09 to $4.33. Morgan Stanley also projects 2027 fiscal revenue at $264.648 billion with EPS at $6.28.
