Rohan Paul (@rohanpaul_ai) · 10/20/2026, 15:41:29
Morgan Stanley Backs Nvidia but Flags Concentrated AI Demand Risk
Morgan Stanley rates Nvidia as the best risk/reward play in AI, projecting nearly $700B in revenue from hyperscalers' $1.58T spending by 2027. However, the report highlights that 91.7% of Nvidia's revenue is exposed to infrastructure demand, with heavy reliance on just two buyers (SpaceX and AWS) and a significant power shortfall for US data centers.
SOURCE COVERAGEFull Original Report
Rohan Paul (@rohanpaul_ai) · 2026-10-20 07
Morgan Stanley rates Nvidia AI’s best risk/reward, though 91.7% of its 2027 revenue is exposed to infrastructure demand.
MS research expects hyperscalers and AI cloud providers to spend 700B reaching Nvidia.
That haul leans on 2 buyers, with SpaceX and Amazon Web Services modeled at about 54% of Nvidia’s 2027 hyperscaler revenue and 72% of growth.
Morgan Stanley still calls the stock cheap at 15 times fiscal 2028 earnings, arguing analysts underestimated 4 past compute cycles by 38% on average.
Its own power model, though, projects US data centers falling 32GW short of the 97GW they need through 2028.
