Sam Boughedda

Investing.com — NVIDIA Corporation, NASDAQ: stock rose 0.2% Tuesday when Morgan Stanley analyst Joseph Moore returned to coverage. He gave a similar weight rating and set a $217 price target. 

Moore told investors in a note that while he believes Nvidia “remains one of the best growth names in the semis space,” he has concerns regarding its high valuation and deceleration in the gaming industry.

“Our approach is to at least maintain a market weighting in the stock, and look for spots for an overweight,” the analyst said.

Moore said, “We project a substantial deceleration of gaming, which should result in an modestly challenging 2023. This is offset by strong data center exposure. However, we believe near-term gaming numbers should remain stable.”

He said that while they were bullish about the company’s long term prospects, and consider it a core holding, interest rate worries and the correction in gaming keep them on the sidelines.