11:08 AM EST, 11/14/2025 (MT Newswires) -- Nvidia ( NVDA ) is set to deliver a breakout Q3 as Blackwell enters a full ramp and demand continues to surge, Morgan Stanley said in a Friday note.

The firm noted Nvidia's ( NVDA ) Blackwell chip remains "the AI chip of choice" with very strong demand signals across customers and suppliers.

"We expect Nvidia's ( NVDA ) Data Center business to drive much of the growth over the next 5 years, as enthusiasm for generative AI has created a strong environment for AI/ML hardware solutions," the bank said.

Morgan Stanley cautioned evolving supply "constraints of varying degrees" exist in components such as memory, optics and certain lasers, and flagged power availability and front-end wafer capacity as larger risks over the long term. However, it sees no current limits on shipments and expects demand to remain healthy.

The firm raised its estimates to roughly $55 billion in Q3 revenue and $63.1 billion in Q4, while lifting full year 2027 revenue and non-GAAP EPS guidance to $298.5 billion and $7.11, respectively, reflecting the stronger backlog.

Nvidia ( NVDA ) will report Q3 financial results on Nov. 19.

Morgan Stanley reiterated its overweight rating on Nvidia ( NVDA ) and raised the price target to $220 from $210.

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