Nvidia and Broadcom drive entire S&P 500 rally as Morgan Stanley ups price targets

As of 11 a.m. ET, all of the rise in the SPDR S&P 500 ETF on Wednesday can be attributed to just two companies: Nvidia and Broadcom.

Morgan Stanley analyst Joseph Moore raised his price targets on these stocks, to $200 from $170 for Nvidia and to $338 from $270 for Broadcom, saying the strength of the AI boom will continue to benefit the names. He has an “overweight” rating on both stocks.

“All of our data points and contacts are telling us that customers need more compute, and we are seeing a clear acceleration in inference workloads driving that,” he wrote. “While stock prices have moved higher, our conviction on AI spend durability in 2026 continues to grow.”

Nvidia’s Blackwell ramp should be supported by an expansion in supply in the back half of this year, which should foster a more aggressive improvement in earnings revisions, per Moore, while Broadcom “seems the most uncontroversial of the AI names” and “has one of the most compelling bull cases.”

In addition, the analyst raised his price target on three other semiconductor companies he covers: Marvell Technology, Astera Labs, and Advanced Micro Devices.