1339 ET - Investors may be underestimating the long-term durability of demand for Nvidia's chips, Morgan Stanley analysts write in a note, once again naming the company as their top pick. Some investors lack conviction for Nvidia beyond 2027, worried that the lack of cash generation from hyperscalers might slow spending on processors. But signs of continued compute shortages and hyperscalers placing prepaid, multi-year orders on memory suppliers suggest that spending will continue past 2026. "There is simply no indication that the current investment cycle has run its course, and there is plenty of evidence that the spenders intend to keep spending for at least a couple more years," the analysts write. Nvidia is up 2.8%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

March 02, 2026 13:39 ET (18:39 GMT)

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