© Reuters.
By Sam Boughedda
Investing.com — NVIDIA Corporation (NASDAQ:) stock rose 0.2% after Morgan Stanley analyst Joseph Moore resumed coverage with an equal weight rating and $217 price target on Tuesday.
Moore told investors in a note that while he believes Nvidia “remains one of the best growth names in the semis space,” he has concerns regarding its high valuation and deceleration in the gaming industry.
“Our approach is to at least maintain a market weighting in the stock, and look for spots for an overweight,” the analyst said.
“We model a significant deceleration in gaming that should result in a modestly challenging 2023, offset by a robust data center exposure, though we think near term gaming numbers should remain solid,” added Moore.
He continued by saying that they are bullish on the company’s long-term prospects and see it as a “core holding,” but interest rate concerns and the gaming correction keep him on the sidelines.
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