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Investing.com -- Morgan Stanley raised its price targets across a basket of semiconductor names, citing “exceptional” strength in artificial intelligence demand from hyperscalers and consumer internet firms.
“We think that the increase in enthusiasm for AI semis is justified by long-term strength in the business,” said the analysts, who raised targets for Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Astera Labs, Marvell (NASDAQ:MRVL) Technology and AMD (NASDAQ:AMD).
The firm added that “our conviction on AI spend durability in 2026 continues to grow.”
Nvidia remains Morgan Stanley’s top pick in the sector. The price target was raised to $200 from $170, with the analysts highlighting the new Blackwell product cycle and sustained demand outpacing shipments.
“Supply bottlenecks will continue to set the pace of growth, but supply is set to improve in the second half,” the analysts wrote.
The target on Broadcom was raised to $338 from $270. Morgan Stanley described it as “the most uncontroversial of the AI names,” citing the firm’s ambitious addressable market and long-term optionality.
Astera Labs saw its target increased to $125 from $99, with Morgan Stanley saying it expects the stock to trade at a premium “due [to its] unique AI exposure.”
Marvell’s target was raised to $80 from $73, while AMD’s was lifted to $185 from $121.
While AMD holds a “somewhat secondary position in AI,” Morgan Stanley said a recent rebound in its MI308 chip for China and improved PC visibility help “support a higher multiple.”
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