Banking giant HSBC has upgraded Nvidia (NASDAQ: NVDA) to ‘Buy’ from ‘Hold,’ raising its price target to $320 from $200, the highest on Wall Street.
With the stock closing the last session at $180, the new target implies a potential rally of about 77%.
The upgrade comes from HSBC analyst Frank Lee, who highlighted a significant expansion in Nvidia’s expected fiscal 2027 performance. The bank now forecasts Nvidia’s FY27 datacenter revenue at $351 billion, 36% above the consensus estimate of $258 billion.
HSBC also expects easing tensions in the China GPU market, suggesting that a potential U.S.-China trade deal could support a recovery in demand.
Notably, the revised FY27 earnings per share estimate stands at $8.75, exceeding the consensus projection of $6.48, even without including revenue from chip exports to China.
Additionally, Nvidia’s CoWoS wafer allocation at TSMC has been increased to 700,000 units from 480,000, representing 140% year-on-year growth. This boost is expected to further strengthen datacenter revenue projections and support long-term growth prospects.
Wall Street bullish on NVDA stock
The bullish HSBC outlook aligns with broader Wall Street sentiment on the American semiconductor giant. Based on 37 analysts’ 12-month price targets, Nvidia has an average forecast of $221.36, suggesting a potential 23% gain from its current price of $180.
The analysts’ estimates on TipRanks range from a low of $155 to a high of $300, reflecting varied expectations for the company’s performance over the next year, with many citing its pivotal role in AI.
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