Morgan Stanley maintains a positive long-term outlook for Nvidia (NVDA), citing sustained demand in AI infrastructure and data center growth. The firm underscores the company’s dominant position in semiconductors despite near-term market volatility.
- Nvidia’s data center segment accounted for over 75% of total revenue in Q3 2025
- Revenue reached $39.3 billion, up 28% year-over-year
- Projected CAGR for data center growth exceeds 30% through 2028
- Blackwell architecture expected to launch in late 2025 with 3x performance per watt improvement
- Major cloud providers including AWS, Azure, and Google Cloud are expanding Nvidia-based infrastructure
- NVDA stock trading near all-time highs following positive analyst reassessment
Nvidia (NVDA) continues to demonstrate robust long-term revenue potential, according to Morgan Stanley, which reaffirmed its confidence in the company’s strategic trajectory. The firm highlighted Nvidia’s leadership in AI-driven semiconductor demand, particularly in data center deployments supporting generative AI workloads. With global AI infrastructure investments accelerating, Nvidia’s GPU architecture remains the industry standard across cloud providers and enterprise clients. Key metrics underscore the scale of this opportunity: Nvidia reported $39.3 billion in revenue for fiscal Q3 2025, a 28% increase year-over-year, driven primarily by data center sales that now constitute over 75% of total revenue. Analysts project this segment could grow at a compound annual rate exceeding 30% through 2028, supported by expanding AI adoption in industries such as healthcare, finance, and autonomous systems. The market reaction has been positive, with NVDA’s stock trading near all-time highs following the report. Investors are focusing on Nvidia’s upcoming Blackwell architecture, expected to launch in late 2025, which is projected to deliver up to three times the performance per watt compared to the previous Hopper platform. This advancement is anticipated to further solidify its leadership in AI training and inference workloads. Stakeholders, including cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud, are actively scaling their Nvidia-powered infrastructures. The continued integration of Nvidia’s AI chips into next-generation systems positions the company at the forefront of the ongoing digital transformation.