Morgan Stanley Sees 17% S&P 500 Upside, Sets Nvidia Target at $288
MS•Morgan Stanley raised its S&P 500 year-end target to 8,000, forecasting 17% upside and boosting 2026 EPS to $340. Its team set a $288 price target on Nvidia, backed a Pemex global bond sale to cover 2027 maturities, and advised holding AppLovin shares.
1. Revised S&P 500 Target
Morgan Stanley strategists led by Ben Snider lifted the S&P 500 year-end projection to 8,000 from 7,600, implying 17% total return. The firm also raised its 2026 EPS forecast to $340, citing AI-driven earnings momentum powering US equities.
2. Nvidia Valuation Call
Analyst Joseph Moore reiterated a buy rating on Nvidia with a $288 target, reflecting expectations for sustained demand in AI infrastructure. The forecast builds on Nvidia’s record rally and positions the stock for further multiple expansion if AI spending remains robust.
3. Pemex Global Bond Strategy
Strategist Simon Waever endorsed a global bond issuance by state-owned Pemex to refinance hard-currency maturities due in 2027 and reduce reliance on federal transfers. MS argues that tighter yield spreads versus Mexican government debt signal sufficient market confidence for a fresh issue.
4. AppLovin Stay Recommendation
Morgan Stanley equity researchers recommended investors stay the course on AppLovin despite a weak 2026 performance. The team cited stabilizing ad spend trends and potential product enhancements as reasons to maintain exposure to the mobile advertising platform.
