The investment bank restored the GPU maker to its premier ranking in the chip sector after holding a roadshow with Chief Executive Officer Jensen Huang. Morgan Stanley noted that Nvidia's compute efficiency per GW provides a competitive advantage given current power and data-center constraints.

Analysts at the bank identified agentic AI as a primary driver for future GPU demand. They also described the company's current market valuation as "very undemanding," suggesting that the stock remains attractive for investors.