Nvidia Rallies on Upgraded Expectations Amid Trade War Relief

Nvidia shares soar as Morgan Stanley raises projections for revenue and EPS. Positive trade news also bodes well for the company, enhancing investor sentiment.

Date: 26-04-2025

AI Rating: 8

Nvidia's Recent Stock Surge

Nvidia has witnessed a notable increase in its stock price, primarily driven by an upgraded forecast from Morgan Stanley regarding both revenue and earnings per share (EPS), as well as positive developments in the U.S.-China trade relations.

Revenue Growth

Morgan Stanley raised its total revenue projections for Nvidia for the year 2027 to $255.5 billion, up from an earlier estimate of $230.9 billion. This revision represents a significant confidence in the company's growth trajectory, indicating robust future demand for AI-related technologies and inference chips.

Earnings Per Share (EPS)

Furthermore, the bank increased its EPS forecast to $6.01 from $5.37. This upward adjustment reflects not only strong revenue growth potential but also confidence in Nvidia's operational efficiency and profitability moving forward.

Impact of Trade Relations

The positive news surrounding U.S.-China trade, including the lowering of tariffs on semiconductors, could enhance Nvidia's business climate. Although Nvidia already benefits from exemptions due to its manufacturing locations, any reduction in trade tensions is favorable for investor sentiment and likely to support the stock’s performance.

Conclusion

Overall, the combination of Morgan Stanley’s bullish outlook paired with favorable geopolitical developments suggests a positive momentum for Nvidia. Investors may consider this period as an opportunity to capitalize on the projected growth following the upgrade in revenue and earnings expectations.

Stocks: NVDA