Morgan Stanley reiterated its Overweight rating on Nvidia (NASDAQ:NVDA), calling it a "unique opportunity" in the semiconductor space and maintaining it as the firm’s top pick despite broader concerns about sector headwinds.

“This still seems like a unique opportunity to us,” Morgan Stanley analysts wrote in a note. “The largest market cap semiconductor company in the world is making a strong case that business will accelerate from here, while there is still significant anxiety—almost consensus—that conditions will decelerate.”

Nvidia’s most recent results impressed across multiple fronts. “Gross margins ahead, revenues ex-China strong, networking recovering, positive commentary on the supply chain ramp on racks,” the analysts stated.