Morgan Stanley raises target price to $206 before Nvidia (NVDA.US) results

Morgan Stanley released a research report saying that Nvidia's demand, supply and competition prospects in the next 12 months remain very favorable. Morgan Stanley maintained its "overweight" rating on Nvidia and raised its target price from $200 to $206. The bank expects Nvidia's second-quarter results and guidance provided to be strong. The demand growth mainly comes from Nvidia's four major hyperscale customers. On the supply side, a number of factors are improving. Morgan Stanley expects Nvidia's third-quarter performance guidance to assume minimal contribution from the Chinese market.