Morgan Stanley Renews Nvidia Pick as Buyback Capacity Reaches $235B

Nvidia shares rose in premarket trading on Friday, October 2, after Morgan Stanley reinstated the chipmaker as its top semiconductor pick, citing a valuation it said left room for growth. The renewed analyst endorsement followed the company’s September 28 announcement of an additional $150 billion share-repurchase authorization, bringing its remaining buyback capacity to about $235 billion. Morgan Stanley analyst Joseph Moore said Nvidia traded at roughly 15 times the bank’s estimate of the company’s fiscal 2028 earnings. He said the shares could benefit if investor enthusiasm for artificial intelligence strengthens, but argued that a higher valuation multiple was not necessary for gains if earnings estimates continue to rise. His assessment followed meetings with Nvidia executives, including Chief Executive Jensen Huang and Chief Financial Officer Colette Kress. The bank also pointed to a changing constraint on AI infrastructure growth. In its view, the limiting factor is shifting from chip production toward how quickly data centers can be built and financed.