HSBC upgrades Nvidia, leaving few cautious analysts left on AI leader
HSBC sees a more optimistic future ahead for Nvidia as its potential pool of clients continues to swell. The bank upgraded the graphics processing unit manufacturer to buy from hold. Analyst Frank Lee also raised his target price to $320 per share from $200, signaling a whopping 78% upside from Tuesday’s close. After the HSBC move that leaves just one major analyst firm with a hold rating, Deutsche Bank, according to Tipranks.com . Seaport Global has the only sell rating left on Wall Street. Lee cited a potential increase in GPU total addressable market for the fiscal 2027 year versus previous expectations, especially following Nvidia’s deals with OpenAI and Stargate . These signs of an expanding market led the analyst to revise his data center estimates for the fiscal 2027 year to $351 billion, which is 36% higher than consensus estimates calling for $258 billion. NVDA YTD mountain NVDA YTD chart A recovery in China could also provide a tailwind. Since most sell-side analysts are not assuming any meaningful revenue contribution for China, any resumption in demand would lead to an upside surprise to market expectations, Lee said. “We also see potential easing of China GPU uncertainties following the potential US-China trade deal that could enable NVIDIA to see a demand recovery in the Chinese market,” the analyst wrote. “With c78% upside, we upgrade our rating to Buy as we expect AI GPU TAM to keep increasing beyond hyperscalers, leading to continuous earnings growth.” Nvidia shares rose more than 1% following the upgrade. Year to date, it’s up more than 35%. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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