On Monday, May 19, Morgan Stanley maintained its overweight rating for NVIDIA Corporation (NASDAQ:NVDA), with a target price of $160. Analysts for the company highlighted the company's recent announcements, including the new NVLink Fusion InterConnect Technology, a technology that can be integrated with Custom ASICS and non-NVIDIA CPUs, including Qualcomm and Fujitsu's CPUs. The company's analysts noted that further analysis is needed to better understand how this affects customer choice and competition, especially compared to the upcoming Ualink technology.

Close-up of inserting a colored high-end graphic card into a gaming computer.

NVIDIA Corporation (NASDAQ:NVDA) also launched an RTX Pro server designed for the enterprise AI reasoning market. These servers feature NVIDIA networking technology and up to 8 Blackwell RTX Pro Graphics 6000 cards. The company aims to expand its enterprise solutions, and the RTX Pro server will support the company's AI Enterprise software platform.

NVIDIA Corporation (NASDAQ:NVDA) upgrades its robot foundation model Isaac GR00T by adding a new synthetic data generation framework called ISAAC GR00T-DREAMS. This update will improve training for humanoid robots. The company is also close to launching its first personal workstation computer. DGX Spark is expected to launch in July, and the DGX station will be launched later this year.

The company has also taken strategic steps to strengthen its global business and announced a partnership with Foxconn and the Taiwan government to build supercomputers with 10,000 Blackwell GPUs. Taiwan’s semiconductor manufacturing company is expected to become a major customer of the project. In addition, NVIDIA Corporation (NASDAQ:NVDA) plans to open a new office in Taiwan.

The company's analysis points to some challenges from NVIDIA Corporation (NASDAQ:NVDA), which includes more than $5 billion in revenue headwinds as the U.S. Department of Commerce bans sales of Chinese H20s and early issuance of GB200s. However, Morgan Stanley hopes the company solves these issues over time and expects a strong second half for NVIDIA Corporation (NASDAQ:NVDA).

Although we acknowledge that NVDA’s potential is an investment, our belief is that certain AI stocks have higher returns and limited downside risks. If you are looking for more promising AI stocks than NVDA and have 100x upside potential, check out our report Cheapest AI stocks.

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Disclosure: None.