10:56 AM EST, 11/20/2025 (MT Newswires) -- Nvidia ( NVDA ) continues to perform at a very high level and the stock is likely to climb higher as artificial intelligence sentiment stabilizes, Morgan Stanley said in a Thursday research report.

While Nvidia's ( NVDA ) $10 billion sequential revenue growth in Q3 is impressive, demand is far higher and could pose difficulties ahead as supply chains need to adapt fast to support the chipmaker's requirements, analysts wrote.

While growth puts pressure on the supply chain, the lack of slack in the system is creating hurdles, which the company is working to manage, but costs are likely to go up in a number of places in 2026 compared with 2025, according to the note.

For the April quarter, Morgan Stanley raised its adjusted EPS forecast to $1.61 on revenue of $69.38 billion. The firm expects adjusted EPS of $7.35 on revenue of $311.86 billion for 2027, and EPS of $8.96 on revenue of $392.92 billion for 2028.

Morgan Stanley has an overweight rating on the stock and raised its price target to $235 per share from $220.

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