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Nvidia push into networking and CPUs reinforces its full-stack AI bid
Morgan Stanley points to CPU and networking growth, plus a claim of lower cost per token, as part of Nvidia's AI platform strategy.
Nvidia is extending its AI position beyond GPUs through networking, CPUs, and other full-stack infrastructure, a focus highlighted by a recent note from Morgan Stanley after meetings with Chief Executive Officer Jensen Huang, according to Yahoo Finance.
The analyst Joseph Moore reiterated an Overweight rating and a $288 price target, citing growth drivers such as AI lab demand, expanding sales of CPUs and networking products, sovereign-AI projects, and enterprise and neocloud customer demand.
The note argues Nvidia's moat goes beyond accelerator hardware, including CUDA software, networking, system architecture, developer familiarity, and the ability to integrate computing, networking, and memory into platforms.
Morgan Stanley also flagged that hyperscalers are developing custom chips and may diversify suppliers, but said alternatives face the challenge of working around an ecosystem already built around Nvidia hardware and software.