Nvidia’s performance in 2026 is tied to the expansion of AI cloud ecosystems, with Morgan Stanley projecting $1,250 average stock price if supply chain resilience holds post- AI is accelerating demand for chips and cloud computing services. The AI chip market is expected to grow 29% per year through 2030, according to Grand View Research, while the cloud computing market is expected to increase at an annualized rate of 20%. Highlights NVIDIA achieved progress since its first quarter earnings announcement in these areas: Portfolio managers cite Nvidia’s projected AI software royalties as a 2026 growth lever, fueling a robust bullish stance within semiconductor-heavy ETF structures.
