Why is Nvidia stock climbing nearly 2% on Wednesday?

Nvidia stock (NASDAQ: NVDA) is climbing higher on Wednesday as big-money investors step back into a name that had gone sideways despite blockbuster numbers.

Shares of Nvidia were trading around the $182–183 mark late Wednesday morning, up nearly 2% on the day, after bouncing off support near $180 and pushing toward the 183 dollar level.

After several weeks where Nvidia stock felt “stuck” despite record revenue and persistent AI hype, a forceful call from Morgan Stanley, coupled with growing clarity around the company’s next act in AI inference, is giving institutions a reason to add risk again.

Morgan Stanley’s “time to buy” call flips the script

The immediate trigger is Morgan Stanley telling clients, in so many words, that it’s time to stop overthinking and buy Nvidia again.

The bank reinstated Nvidia stock as its top semiconductor pick, bumping Micron from the pole position, and reiterated an Overweight rating with a $260 price target.

Analyst Joseph Moore’s argument is straightforward: the stock has been treading water while the business kept getting stronger.

He notes that Nvidia is trading at roughly 18 times projected 2027 earnings, which he calls “a surprisingly good entry point” for a company that still dominates the AI accelerator market and continues to post eye-watering growth numbers.

The message landed because it addressed the core worry on the buy side, not whether Nvidia is good, but whether it is already too good at any price.​

Underneath that call sits a set of fundamentals that remain hard to dismiss.

Nvidia’s most recent fiscal year delivered revenue north of $200 billion, powered by hyperscalers’ rush to build out AI data centers and the still-intense demand for its GPU platforms.

The market had largely assumed perfection after that print, which is why the stock drifted as investors debated how long the growth spurt could really last.

Morgan Stanley’s note effectively told them the pause has gone on long enough.​

Also Read: Why a Tesla billionaire just dumped $180M into Nvidia stock

Nvidia stock: The Groq factor

The second driver is more structural: the Street is increasingly focused on whether Nvidia can own the next phase of AI as decisively as it has owned training.

Here, the company’s deal with Groq is doing a lot of quiet work under the surface.

Late last year, Nvidia agreed to a roughly 20 billion dollar licensing transaction with the inference-focused startup, securing access to Groq’s low-latency “language processing unit” designs and bringing its founder and key engineering leaders in‑house.

That agreement is now feeding into expectations for Nvidia’s next-generation inference platform.

Investors are digesting reports that the company is preparing a new architecture explicitly tuned for running large language models and “agentic” AI in production.

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Jensen Huang has already flagged that Groq’s processors will be integrated into Nvidia’s AI factory architecture to extend coverage across a wider range of real‑time and inference-heavy use cases.​

This matters because it directly undercuts one of the cleaner bear arguments: that Nvidia’s moat would narrow as the industry shifted its spending from training giant models to running them.