Nvidia’s $500bn AI infrastructure plan is a stock positive, says Morgan Stanley

Morgan Stanley analysts said Nvidia's plan to mobilize up to $500 billion for AI infrastructure is positive for its stock, potentially easing concerns about circular financing and creating new revenue streams. The chipmaker announced six institutional partners will create independent compute financing platforms to invest in AI factories, with projects assessed individually. Nvidia may provide residual support of up to 25% of investments, and third-party decision-making should reduce worries that Nvidia is funding its own growth. Morgan Stanley estimated a 35% revenue share above breakeven could add over 10% to fiscal 2029 earnings per share, though risks include additional credit exposure and higher leverage. The $500 billion figure represents potential, not committed, funding. Morgan Stanley reiterated its Overweight rating and $288 price target.