Stocks to Buy Before Earnings Season Ends, Including NVIDIA, Says Morgan Stanley

Morgan Stanley analysts maintain a bullish stance on several overweight-rated stocks, highlighting buying opportunities as the earnings season nears its conclusion. The firm continues to back key names, including Nvidia, EQT, Arista Networks, and Tuya, as they prepare to release their quarterly results.

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Arista Networks

Analyst Meta Marshall remains confident in Arista Networks ahead of its upcoming earnings report. Over the past three to four years, the company has consistently surpassed revenue expectations by approximately 300-400 basis points, aligning with market forecasts. However, Marshall cautions that the fourth-quarter results may not significantly impact the stock’s trajectory.

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She notes that for Arista to achieve “further multiple expansion,” it must demonstrate a notable increase in new customers. Despite this, the company’s potential in the data center sector is underappreciated.

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“Our checks were incrementally more positive on networking this quarter, with data center an area of focus and expectations of gradual improvement throughout the year,” Marshall stated.

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Arista’s stock has surged 61% over the past year, underscoring investor confidence in its long-term growth prospects.

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EQT

Morgan Stanley’s analyst Devin McDermott views EQT’s recent stock dip as a strong buying opportunity. He argues that the stock’s pullback has made valuations more attractive, reinforcing EQT’s position as a top pick ahead of its earnings report.

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“The pullback creates an attractive entry point, with valuations now more compelling,” McDermott wrote.

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Over the past 12 months, EQT has climbed more than 60%, with a 16% gain year to date. The recent stock volatility stems from concerns about DeepSeek’s AI model, which some fear could reduce power demand. While acknowledging these concerns, McDermott believes that other factors outweigh potential AI-driven risks.

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“Rising power consumption is a source of longer-term gas demand upside, but LNG [liquefied natural gas] is a much larger near-term growth driver,” he explained.

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Morgan Stanley continues to favor natural gas over oil exposure within exploration and production (E&P) companies, reaffirming its recommendation to buy EQT amid the recent price decline.

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Tuya

Tuya’s stock has surged 66% this year, and Morgan Stanley sees further upside for the Chinese Internet of Things (IoT) and AI firm. Analyst Yang Liu maintains an overweight rating, citing strong revenue growth momentum.

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Despite the stock’s rapid ascent, Liu believes there is still a disconnect between Tuya’s fundamentals and its share price, urging investors to stay patient.

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“We think it leaves significant room for the share price to catch up with value,” Liu wrote.

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Morgan Stanley acknowledges potential risks tied to tariffs but argues that other growth catalysts outweigh these concerns. Liu also raised Tuya’s price target from $2.30 to $3 ahead of its fourth-quarter earnings release on February 26—the same day Nvidia reports its results.

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“The robust top-line growth is likely to be sustained by strong overseas IoT demand and Tuya’s market share gains,” she added.

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Nvidia

Morgan Stanley remains bullish on Nvidia, despite concerns about long-term risks. The firm highlights strengthening near-term business trends, improving supply chain visibility for its Blackwell architecture, and strong customer spending.

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“While sentiment has worsened around potential longer-term risks, near-term business continues to firm. Blackwell supply visibility continues to build, and customer desire to spend is clearly on display,” analysts noted.

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Morgan Stanley believes Nvidia should trade at a premium due to its high probability of upward earnings revisions in the near term.

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Sector Takeaways

• Arista Networks: Strong historical revenue performance, but further stock gains depend on securing additional customers. Data center growth remains a key catalyst.
• EQT: Valuation now more attractive after recent pullback. LNG demand provides a major near-term growth driver.
• Tuya: Despite a sharp rally, the stock still has room to rise. Overseas IoT demand and strong cost controls support its bullish outlook.
• Nvidia: Near-term fundamentals remain strong, with robust demand and supply visibility boosting confidence.

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With earnings season winding down, Morgan Stanley remains optimistic about these overweight-rated stocks, positioning them as key opportunities for investors seeking growth potential.

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