Investment bank Morgan Stanley on Wednesday raised its price targets on five makers of chips for artificial intelligence data centers, including Nvidia (NVDA) stock.

"We think that the increase in enthusiasm for AI semis is justified by long-term strength in the business," Morgan Stanley analyst Joseph Moore said in a client note.

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Of the five AI chip stocks, he rates Nvidia, Astera Labs (ALAB) and Broadcom (AVGO) as overweight, or buy. He has equal weight, or neutral, ratings on Advanced Micro Devices (AMD) and Marvell Technology (MRVL).

"AI strength is exceptional in both supply and demand," Moore said. "All of our data points and contacts are telling us that customers need more compute, and we are seeing a clear acceleration in inference workloads driving that."

Moore said he is not concerned about the higher valuations for AI chipmakers now.

"While stock prices have moved higher, our conviction on AI spend durability in 2026 continues to grow," he said. "It is our view that at least three of the four top cloud customers have asked for upside, and we have seen even more notable strength from neoclouds and consumer internet companies."

The second half of 2025 will see the ramp of Nvidia Blackwell chip sales as well as supporting chips including those for connectivity, networking and memory, he said.

Moore increased his price target on Nvidia stock to 200 from 170. On the stock market today, Nvidia rose 2.1% to close at 179.27.

Nvidia Stock Is On Five IBD Lists

Moore upped his price target on Astera Labs to 125 from 99. On Wednesday, Astera stock surged 8.8% to close at 128.87.

He raised his price target on Broadcom stock to 338 from 270. Broadcom advanced 1.8% to close at 302.62.

Moore increased his price targets on AMD to 185 from 121 and on Marvell to 80 from 73. AMD stock rose 1.2% to close at 179.51 and Marvell popped 7.1% higher to 81.74.

Nvidia stock is on five IBD lists: IBD 50, Leaderboard, Big Cap 20, Sector Leaders and Tech Leaders.

Astera Labs is on the IBD 50 list. Broadcom is on the Leaderboard, Big Cap 20 and Tech Leaders lists. And AMD is on the Big Cap 20 and Tech Leaders lists.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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