11:20 AM EST, 02/24/2025 (MT Newswires) -- Nvidia's ( NVDA ) fiscal Q1 guidance "may reflect conservatism" amid potential US export controls, Morgan Stanley said Monday in a report.

"We would look for guidance roughly in line with consensus and in line with prior-quarter growth dynamics," Morgan Stanley said. Results from Q4 ended Jan. 26 are due Wednesday.

"We continue to think that near-term fundamentals are strong -- more so than 60 days ago as we have seen improvements on multiple levels," Morgan Stanley said. "The stock remains our top pick, but do not expect the quarter to be a major catalyst."

Most in the industry expect "incremental controls" on exports, "but nobody knows what that may look like," Morgan Stanley said. "Unlike last year, it could be a meaningful headwind" to H2 results, signaling conservative guidance, the report said.

Morgan Stanley has an overweight rating on Nvidia ( NVDA ) stock and $152 price target.

Nvidia ( NVDA ) shares fell 0.9% in recent Monday trading.

Price: 133.19, Change: -1.24, Percent Change: -0.92