Morgan Stanley removes Nvidia from its top-pick list, but maintains its Overweight rating. Nvidia shares have fallen more than 25% since being named a top pick in October, and Morgan Stanley’s latest report also highlighted the importance of Jensen Huang to the company’s strategy. (Previously: Morgan Stanley bucks the trend and says to buy: Median AI stock down 53%, 2028 delayed, not canceled) (Background: Morgan Stanley raises NVIDIA price target to $260! Q4 revenue surges 73% to a record, with Q1 outlook beating expectations again) Morgan Stanley removed Nvidia (NVIDIA, ticker symbol NVDA) from its top-pick list on November 11. CNBC reported that day that the change came just over a month after Nvidia was named a top pick on October 2. However, Morgan Stanley did not lower its rating on the stock. Financial news service FinancialJuice reported in a flash update the same day that Morgan Stanley maintained its Overweight rating on Nvidia even as it removed the stock from its top-pick list. Shares down more than 25% since being named a top pick; Morgan Stanley highlights the importance of leadership CNBC reported that Nvidia shares had fallen more than 25% since the company was added to the top-pick list on October 2. The preferred recommendation it had previously received has now been withdrawn following this pullback. The same report cited Morgan Stanley’s research note from Wednesday, which said CEO Jensen Huang’s leadership is crucial to Nvidia’s strategic direction. This statement indicates that Morgan Stanley also considers the influence of key leadership on the company’s development when evaluating Nvidia. Top-pick designation removed, Overweight rating retained A top pick is a stock that a research firm prioritizes in its recommendations, while an individual stock rating is a separate assessment. Morgan Stanley has withdrawn Nvidia’s top-pick designation but retained its relatively positive Overweight rating; it has not changed the stock to Equal-weight, Underweight, or Sell. Nvidia will report its quarterly results on November 17. The change to the list comes just ahead of the earnings announcement, meaning that although Morgan Stanley no longer ranks Nvidia as a top pick, it continues to maintain a positive rating on the stock. Related coverage Why is the AI memory shortage leading Nvidia to cut its allocation? Morgan Stanley: Bottlenecks will redirect data toward NAND and interconnect chips Morgan Stanley warns: AI concentration could trigger a year-end shock, S&P 500 equal-weight index plunges 5% Bank of America: Nvidia is up just 3% this year because it’s undervalued! Its P/E ratio has fallen to a seven-year low Morgan Stanley bullish: Nvidia’s Blackwll chips to ship on schedule in Q4, benefiting TSMC and five other suppliers