12:38 PM EDT, 05/20/2024 (MT Newswires) -- Nvidia ( NVDA ) is expected to report a strong Q1 performance Wednesday, driven by robust demand for its graphics processing unit microarchitecture Hopper before the Blackwell transition, Morgan Stanley said in a note.

"Our positive view of the quarter and outlook has not changed, though buy side expectations have risen," Morgan Stanley said. "We continue to think this is a strong setup for the Blackwell transition."

"Each of the last 2 quarters NVDA has beat initial revenue guidance by ~$2bn and guided for an incremental ~$2bn; we expect

something similar later this week," the report said.

Morgan Stanley also said its checks detected no pause in Hopper demand, with demand remaining fairly strong well into the early stages of the Blackwell ramp.

"What's important for us at this stage is not about estimates for any one product several months before it's shipping but NVIDIA's ( NVDA ) superior product execution that puts them firmly in pole position," the report said.

Morgan Stanley has an overweight rating on Nvidia ( NVDA ) with a price target of $1,000.

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