Morgan Stanley Reinstates Nvidia as Top Semiconductor Pick

By EC Assets · Published 2 October 2026

Morgan Stanley has reinstated Nvidia as its top semiconductor pick. The investment firm cited an attractive valuation for the move. Nvidia is now among Morgan Stanley's top chip stocks for 2026. Analysts led by Joseph Moore at Morgan Stanley confirmed Nvidia's return as the top semiconductor pick. They argue that Nvidia remains in the early stages of a new product cycle ramp. This ramp is powered by a new shell product. Nvidia, Broadcom, and Astera Labs are listed among Morgan Stanley's top semiconductor stocks for 2026. The firm noted this is the third consecutive year that its top chip stocks include these names. Nvidia's updated valuation work points to a fair value of US$327.70. This represents an increase from US$302.83 in the latest analyst model. This change in fair value sits alongside research commentary that balances enthusiasm about Nvidia. Morgan Stanley also observed that Nvidia is increasingly using its balance sheet as a strategic backstop. The firm suggested this strategy could be a "double-edged sword." This article is intended for informational purposes only. It does not constitute investment advice.