Morgan Stanley named a new top pick which it called a "unique Nvidia proxy."
"We see Aspeed as a unique NVIDIA-related play, being the sole BMC supplier for GB200 and a key supplier to help realize Omniverse adoption," said Morgan Stanley analysts in a June 7 note.
Morgan Stanley said with an average selling price of $100 per chip, it estimates the company could enjoy gross margins of 90%.
The positive outlook for cloud capital expenditure is also set to benefit the data center supply chain, according to Morgan Stanley.
That expected growth would be a 42-point acceleration from just 2% year-on-year growth in 2023, Morgan Stanley said.
Persons:
Morgan Stanley, CNBC's Michael Bloom
Organizations:
NVIDIA, BMC, GB200, Nvidia, Aspeed, Meta, Microsoft, Google, International, Emerging, China ETF
Locations:
Taiwan, China