Nvidia Delivers Strong Q2 as Long-Term Outlook Improves, Morgan Stanley Says

11:03 AM EDT, 08/27/2026 (MT Newswires) -- Nvidia (NVDA) delivered solid fiscal Q2 results, supported by a stronger long-term outlook, with management pointing to higher revenue expectations and continued demand, Morgan Stanley said in a note Thursday. The firm said the quarter was above expectations, but the more important takeaway was management's longer-term outlook. Nvidia expects about 70% growth in fiscal 2028, compared with Morgan Stanley's previous estimate of 52% and consensus of around 40%. The bank said it is raising its fiscal 2028 and fiscal 2029 revenue estimates about $100 billion and $200 billion, respectively. Demand remains heavily supply-constrained, and management said demand is "much greater" than the 70% growth level, it added. Gross margins were slightly weaker because of higher memory costs, but this removes an important overhang for investors, the firm said, adding that Nvidia's expected 72% to 73% gross margin next year is broadly in line with its 72.5% estimate. "This is our Top Pick in the semis group, with a compelling product cycle, exceptional growth, and valuation below peers," the bank added. Morgan Stanley raised its price target on Nvidia from $288 to $300 and reiterated its overweight rating. Price: 226.97, Change: +17.31, Percent Change: +8.26