Analysts trimmed the NVIDIA assessment multiple from 35x to 32x, amid broader questions about AI efficiencyexport controls and short -term demand.
Deepseek, a Chinese AI company, recently presented a model of significantly lower cost hardware, which generated concerns about possible changes in the panorama of investments in AI.
Morgan Stanley’s foundations
Morgan Stanley said Nvidia acknowledged that “Deepseek’s work illustrates how new models can be created using that techniquetaking advantage of widely available models and computing capacity that fully complies with export controls. “In addition, he stressed that the Chinese market remains an important revenue promoter for NVIDIA, despite US export restrictions.
Although the innovations in efficiency behind the Depseek model were impressive, Morgan Stanley said that it was an “already explored” terrain and that it is unlikely that the behavior of spending in the AI sector is unlikely to alter significantly.
Analysts emphasized that industry contacts have indicated: “This will not change our spending plans” and “there is nothing magical here.” Morgan Stanley highlighted the robust and continuous demand of the next -generation products of NVIDIA, Blackwell, but recognized short -term challenges.
The demand for the Nvidia Hopper GPUs, currently in the market, has begun to stagnate, since customers expect the launch of Blackwell. In addition, concerns about GB200 chip manufacturing performance could limit short -term growth.
Despite reducing Nvidia’s price objective, Morgan Stanley remains optimistic about the long -term panorama for AI semiconductors, citing a strong underlying demand for Blackwell products.
The analysts concluded: “We hope to return to significant growth in the second half of the year”, as Nvidia products increase their production and adoption.
In general, Morgan Stanley believes that Nvidia is well positioned to continue its growth, but advises caution in the volatility of the market in the short term and the feeling of investors after the disruptive announcement of Deepseek.
More Morgan Stanley details
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Nvidia and its role in AI: NVIDIA is one of the leading companies in the development of hardware and software for artificial intelligence applications, especially in the field of Graphic Processing Units (GPU), which are essential for training complex models.
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Deepseek and its impact: Deepseek is a Chinese company that has developed an AI model using lower cost hardware, which could represent a more accessible alternative for some AI applications. This has generated concerns about whether it could reduce dependence on the expensive Nvidia solutions.
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Export controls: Export restrictions imposed by the United States have affected companies such as NVIDIA, which depend largely on the Chinese market. However, Nvidia has managed to adapt to some extent, as evidenced by its ability to comply with these regulations.
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NVIDIA PRODUCTS CYCLE: Nvidia is in transition between its current generation of products (Hopper) and the next (Blackwell). This type of transitions usually generates volatility in demand, since customers can delay purchases waiting for new technologies.
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Long -term perspectives: Despite short -term challenges, Morgan Stanley and other analysts remain optimistic about the future of Nvidia, given the continuous growth of the demand for AI solutions in multiple industries.
Source: Ambito
