Nvidia (NVDA) stock has been under pressure in recent sessions amid a broader macroeconomic-uncertainty-driven selloff in the high-flying artificial intelligence (AI) names.
Following this decline, NVDA stock seems headed to challenge a key support coinciding with its 50-day moving average (MA) at the $186 level.
A break below this price could accelerate the selloff in the near term. Despite the aforementioned weakness, however, Nvidia shares remain up more than 100% versus their year-to-date low.
According to Morgan Stanley, the recent pullback in NVDA shares is an opportunity to load up on a quality name at a discount, especially with the company’s earnings coming up on Nov. 19.
Consensus is for the semiconductor giant to report $1.17 per share of earnings for its third quarter. This would translate to a whopping 50% year-on-year increase, which may drive the AI stock higher.
Options contracts expiring Nov. 21 are also skewed to the upside, with a put-to-call ratio of 0.51 and an implied move of 6.55%.
This means Nvidia stock could be trading at north of $200 again by the end of next week.
Morgan Stanley analyst Joseph Moore recommends buying the dip in NVDA stock mostly because its internal checks signal a faster-than-expected Blackwell ramp.
He believes supply constraints have improved and the AI darling will report “strongest results we have seen in the last few quarters” on the coming Wednesday.
More importantly, the analyst sees “very strong” demand for Nvidia’s upcoming Rubin platform as well, which he expects will unlock significant further upside in its stock in 2026.
According to him, “convex earnings leverage” could drive the AI stock to $220 by the end of next year, indicating potential upside of more than 20% from current levels.
What’s also worth mentioning is that Morgan Stanley, despite its upwardly revised price target on Friday, remains among the more conservative firms on Nvidia shares.
The consensus rating on NVDA stock currently sits at strong buy, with the mean target of an even higher $234 signaling potential for another 27% rally from here.
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