US Stock Market Move | Morgan Stanley names NVIDIA Corporation (NVDA.US) as top semiconductor pick amid the "power shortage bottleneck," shares rise nearly 3%

On Monday, NVIDIA Corporation (NVDA.US) opened higher and climbed, rising nearly 3% as of press time, with a market capitalization of US$5.23 trillion. On the news front, Morgan Stanley, in a thematic research report, raised its forecast for the net power gap in U.S. data centers for 2026-28 to 38GW, up from 33GW previously. At the same time, Morgan Stanley noted that amid the power gap, ASICs may lose share relative to GPUs, and in semiconductors it remains most bullish on NVIDIA Corporation. The trigger for this round of updates is that investors are trying to reconcile capital expenditure expectations of US$1.5 trillion for 2027 and US$1.6 trillion for 2028 with power availability. Morgan Stanley stated bluntly that about one-third of the power gap is not market consensusmany investors believe companies will "creatively find ways around the bottleneck," citing still-strong supply chain orders as evidence. In semiconductors, the bank is most bullish on NVIDIA Corporation and Broadcom Inc., citing conservative guidance, visibility into chip deployment, geographic expansion outside the United States, and NVIDIA Corporation's higher token output per watt. If construction pauses, the disruption is most likely to appear at the end of the "bullwhip effect"that is, where shortage-driven pricing supports revenue and profit, such as memory, optical modules and other downstream components, as well as power management and analog devices that may be over-ordered in a bear-case scenario.