Nvidia Stock Jumps as Morgan Stanley Calls It a Top Pick After Retreat [Video]

Nvidia (NVDA) shares gained Wednesday after Morgan Stanley analysts said the artificial intelligence (AI) darling was a “top pick” after the recent chip sell-off.

Nvidia shares were recently up more than 12% to around $116, extending their year-to-date climb above 130% as other chip shares also rose. The analysts didn’t change their earnings expectations or $144 price target.

“The selloff presents a good entry point as we continue to hear strong data points short term and long term, with overblown competitive concerns,” the analysts wrote, noting that Nvidia’s shares have “sold off on a large list of concerns that we think are likely to fade with time.”

Concerns Are Overblown, Analysts Said

Among the concerns that have weighed on Nvidia and its chip peers are tougher trade restrictions and geopolitical tensions. Investors have also voiced concerns about big tech companies’ scale of AI spending.