tech
March 2, 2026
We're upgrading our rating on Nvidia shares. Here's why
The market punished the stock after a strong earnings report with an even stronger guide.
TL;DR
- Nvidia stock has been upgraded to a buy-equivalent rating due to an attractive entry point, despite a recent market overreaction to strong earnings.
- The stock has experienced a seven-month consolidation, trading at a lower forward price-to-earnings multiple than in August, making it cheaper.
- Morgan Stanley named Nvidia its top pick, citing increasing AI spending and concerns about the durability of growth turning into long-term enthusiasm.
- Hyperscalers are placing multi-year orders for memory with prepayments, indicating continued, multi-year spending increases.
- Nvidia is reportedly designing a new inference chip, leveraging Groq technology from a recent licensing agreement, to address AI model usage demand and counter custom solutions.
Continue reading the original article