[Despite High Valuation, NVIDIA Remains Morgan Stanley's Top Semiconductor Stock] According to a report by Jinse Finance on July 11, Morgan Stanley analysts wrote in a report released after an investor meeting with company executives that despite its high market valuation and underperformance compared to peers, NVIDIA remains Morgan Stanley's top semiconductor stock. They noted that although AI hyperscale cloud service providers, which currently account for about half of data center revenue, are seeking custom chip alternatives, NVIDIA 'will retain a significant portion of the business,' and both categories are expected to grow. They added that demand from Neocloud, industrial, and sovereign data centers also remains strong, and the Vera Rubin chips are expected to ship on schedule. 'Our conviction remains strong,' Morgan Stanley analysts wrote. 'Admittedly, valuation multiples may be constrained by the large market cap and index weighting, but in our view, the value differential will recover over time.'