Nvidia's $500B AI investment plan boosts stock, Morgan Stanley says

Nvidia's plan to mobilize up to $500 billion in potential AI infrastructure investments is positive for its stock, as it could ease circular financing concerns and create new recurring revenue streams, Morgan Stanley analysts said. The chipmaker announced the potential investment with six partners to create independent computing finance platforms for AI factories. Partners will evaluate projects individually, with Nvidia providing residual support up to 25% of investments, reducing fears it is funding its own growth. Morgan Stanley estimates a 35% revenue share beyond breakeven could add over 10% to Nvidia's fiscal 2029 earnings per share, depending on GPU pricing and deployment. It reiterated an Overweight rating and $288 price target, though noting risks like credit exposure and higher ecosystem leverage.