• Morgan Stanley lifts Nvidia's price target to $210 from $206, maintaining an Overweight rating.
  • The firm cites Nvidia's $7 billion sequential revenue guidance—which excludes China—as "unprecedented."
  • Strong demand persists with customers buying older Hopper GPUs amid shortages; potential H20 sales could add $2–5 billion to guidance.

Morgan Stanley has increased its price target for Nvidia Corp. (NVDA) to $210, up from $206, according to a note to clients seen on Tuesday. The firm reiterated its Overweight rating on the semiconductor giant, pointing to what it called an "unprecedented" revenue guidance of $7 billion for the current sequential quarter.

The key takeaway from analysts is that this robust guidance figure notably excludes any contribution from the Chinese market, which is constrained by U.S. export controls on advanced AI processors. Despite this significant geographical exclusion, demand for Nvidia's GPUs remains so intense that customers are continuing to purchase older-generation Hopper architecture chips due to ongoing shortages of the latest products.

“True demand remains under-shipped,” the analysts wrote, suggesting that the company’s own projections might still be conservative. They highlighted that potential sales of the China-compliant H20 GPU could inject an additional $2 billion to $5 billion into revenue, potentially pushing guidance even higher. Efforts to reach a Nvidia spokesperson for additional comment on the H20 sales pipeline were not immediately successful.

This bullish outlook from a major Wall Street firm arrives just weeks after Nvidia posted record Q2 FY2026 revenue of $46.7 billion, a 56% increase year-over-year, overwhelmingly driven by its data center segment. The note underscores a prevailing sentiment on the Street that the AI infrastructure build-out, led by cloud providers and large enterprises, is far from over and continues to outstrip available supply.

The ongoing chip shortage has created a unique market dynamic where even previous-generation hardware maintains strong demand, providing Nvidia with a multi-generational revenue stream. This environment allows the company to navigate geopolitical headwinds, such as the export restrictions to China, with more agility than initially anticipated by some market watchers. With the next-generation Blackwell GPUs on the horizon, analysts are watching to see if supply can eventually catch up to the insatiable global demand for AI compute power.