Nvidia garnered another endorsement on Wednesday (Thursday AEDT) as HSBC upgraded its rating on the chipmaker to ‘buy’ from ‘hold’, pointing to the sustained expansion of artificial intelligence. HSBC also significantly increased its price target for Nvidia stock to a street-high of $US320 ($490), a substantial rise from the previous target of $US200. This new target suggests a potential upside of approximately 80 per cent from Nvidia’s last closing price of $US180.03.
Reaching this target would bring Nvidia’s market capitalisation close to $US8 trillion, a considerable increase from its current market cap of around $US4.37 trillion. Nvidia is a leading designer of graphics processing units (GPUs) that enhance the experience on computing platforms. The company’s products are used across a variety of industries, from gaming to professional visualisation to data centres.
Analyst Frank Lee noted, “We expect AI GPU TAM to keep increasing beyond hyperscalers, leading to continuous earnings growth.” This refers to the total addressable market for AI processing chips. Lee added that this trend creates “room for significant FY27e earnings upside”, indicating a potential increase in earnings for the fiscal year 2027. Nvidia shares initially rose by 2 per cent on Wednesday (Thursday AEDT), but later showed little change, mirroring the broader market trends. However, the stock has already increased by over 30 per cent year-to-date.
Following the upgrade, more than 90 per cent of analysts tracked by Bloomberg now recommend buying Nvidia stock. Fewer than 8 per cent hold equivalent ‘hold’ ratings, with only one analyst recommending a ‘sell’. The average price target for Nvidia shares is around $US220, suggesting a potential return of over 20 per cent based on Tuesday’s closing price. HSBC also reaffirmed its ‘buy’ rating for Advanced Micro Devices (AMD), raising its price target on AMD stock from $US185 to $US310, also a street high.
