Nvidia (NVDA) stock has been facing downward pressure recently, along with other artificial intelligence (AI) names, due to broader macroeconomic uncertainty. The stock is now approaching a critical support level at its 50-day moving average of $186, and a break below this price could lead to further selling pressure in the short term. Despite this recent weakness, Nvidia shares have still seen significant gains, up more than 100% from their year-to-date low.
Morgan Stanley views the current pullback in NVDA shares as a buying opportunity, especially with the company’s upcoming earnings report scheduled for Nov. 19. Analysts are expecting Nvidia to report earnings of $1.17 per share for the third quarter, a 50% increase year-on-year, which could potentially drive the stock higher.
Options contracts expiring on Nov. 21 are skewed towards the upside, with a put-to-call ratio of 0.51 and an implied move of 6.55%. This suggests that Nvidia stock could potentially climb back above $200 by the end of next week.
Morgan Stanley analyst Joseph Moore recommends buying the dip in NVDA stock, citing faster-than-expected Blackwell ramp and improved supply constraints. He anticipates strong results in the upcoming earnings report and sees significant demand for Nvidia’s Rubin platform, which could unlock further upside potential in 2026. Moore believes that Nvidia’s “convex earnings leverage” could drive the stock to $220 by the end of next year, representing a potential upside of more than 20% from current levels.
Despite Morgan Stanley’s revised price target, which remains conservative, the consensus rating on NVDA stock is a strong buy with a mean target of $234, signaling potential for a 27% rally from the current price.
In conclusion, while Nvidia stock has faced recent pressure, analysts remain optimistic about its potential for growth. Investors may want to consider taking advantage of the current dip in the stock price as Nvidia’s earnings report and future prospects appear promising.
