01:23 PM EST, 12/20/2024 (MT Newswires) -- Concerns about Nvidia ( NVDA ) are "irrelevant" in the long run as the company's underlying dynamics are "very strong," Morgan Stanley said in a note emailed Friday.

Issues such as a slowdown in prior-generation Hopper builds may be "anxiety-inducing" in the short term but will fade away on the strength of new Blackwell products, the firm said, adding that it considers concerns about Hopper builds a "nonissue."

The broader availability of the new generation Blackwell chips later in 2025 should further cement Nvidia's ( NVDA ) competitive position, Morgan Stanley added.

Meanwhile, Nvidia ( NVDA ) could still see "enduring growth potential," supported by multiyear growth drivers including the growth in inference, sovereign training, and enterprise training applications, which account for around 70% of data center revenue, despite concerns about artificial general intelligence arms race "cooling down the road," Morgan Stanley said.

Morgan Stanley maintained its overweight rating on the stock, with a price target of $166.

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