Morgan Stanley favors Nvidia and Legrand, bets against homebuilders

Friday, October 2, 2026·Consolidated from 5 sources

Morgan Stanley has identified Nvidia as its top stock pick, citing AI strengths and attractive valuation. The firm also maintained Legrand as a top pick following a price target increase. In a notable move, Morgan Stanley has reportedly taken a position against a homebuilder favored by Berkshire Hathaway.

Morgan Stanley has re-established Nvidia as its top investment pick, a decision driven by the chipmaker's robust performance in the artificial intelligence sector and what analysts describe as an appealing valuation. Coverage today highlights that the firm believes all current AI trends play to Nvidia's core strengths, making it a compelling choice for investors.

In addition to its bullish stance on Nvidia, Morgan Stanley has also kept industrial manufacturer Legrand on its list of top stock picks. This affirmation follows an upward adjustment of the price target for Legrand, with the firm citing ongoing growth prospects as a key factor in its continued confidence.

Shifting focus, reports also indicate a strategic move by Morgan Stanley to take a position that benefits from a decline in the stock of a homebuilder. This particular builder is known to be a favored investment of Berkshire Hathaway, suggesting a notable divergence in market outlook between the two financial giants.

While not directly related to Morgan Stanley's stock picks, the broader financial landscape on Friday, October 2, 2026, saw competitive offerings in the Certificate of Deposit (CD) market, with multiple institutions providing a 4.40% Annual Percentage Yield (APY). This suggests a stable environment for fixed-income investments.

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