Nvidia's shares saw a slight increase in late Monday trading, following a significant surge in market value during its second-quarter peak. This boost came as a top Wall Street analyst issued a positive outlook for the market-leading AI-chip maker in the second half of the year.

The company recently introduced its Blackwell system, a new line of AI-powering processors that offer more power and energy efficiency compared to their predecessors, H100 and H200. Despite concerns about a potential sales decline due to the transition from legacy chips to Blackwell, Nvidia provided a robust near-term outlook in late May.

For the three months ending in April, Nvidia's data center sales, which include its key AI offerings, experienced a remarkable surge, reaching a record-breaking $22.6 billion. Additionally, the company's gross profit margin expanded to 78.9%.

Nvidia's Co-Founder and CEO, Jensen Huang, witnessed the company's value increase by over $1 trillion during the second quarter, further adding to the positive sentiment surrounding the company.

Further boosting optimism, Morgan Stanley analyst Joseph Moore raised Nvidia's price target to $144 a share and maintained an overweight rating. Moore's team conducted checks in China and Taiwan, indicating strong sales for both the Blackwell and H200 products.

According to Moore and his team, the company's catalyst path remains strong, with increasing H20 builds and demand, dismissing concerns about a pre-Blackwell pause. The transition from H100 to H200 is expected to bring advancements such as better memory bandwidth from HBM3e and higher memory content.

As Nvidia progresses with its Blackwell processors, Moore and his team believe that the company's narrative in the AI semiconductor space remains compelling. They anticipate a significant improvement in visibility and backlog throughout the transition period.

In addition to the Blackwell system, Nvidia is also planning to introduce another advanced line of AI-powering chips called Rubin in 2026. Nvidia's CEO, Jensen Huang, announced this during a speech at the National Taiwan University, revealing that the Rubin systems will be named after the renowned American astronomer Vera Rubin, who is credited with the discovery of dark matter.

With a bullish second-half outlook, continued growth in data center sales, and upcoming product launches, Nvidia remains a frontrunner in the AI-chip market, solidifying its position as a key player in powering the technology ambitions of major players like Meta Platforms, Amazon, and Microsoft.