Wall Street is buzzing with anticipation as Nvidia prepares to release its fiscal first-quarter results on Wednesday after the bell. Despite already sky-high expectations, HSBC analysts are not just confident the chipmaker will meet them—they predict an even more impressive outlook for the quarters ahead.
HSBC, holding a "buy" rating on the AI chip giant, has significantly raised its price target for Nvidia (NVDA) shares to $325, up from $295. This new forecast suggests a potential upside of 46.2% from Monday’s closing price, highlighting strong conviction in the stock's future performance.
Market analysts, as polled by LSEG, are already forecasting a phenomenal quarter for Nvidia, expecting its bottom line to more than double year-over-year, alongside a nearly 80% surge in revenue. However, HSBC's Frank Lee believes the company is poised to surpass these robust Q1 expectations and issue an optimistic second-quarter guidance, paving the way for further stock appreciation.
"We expect the Blackwell momentum and Rubin ramp to sustain earnings momentum, with potential upside from [total addressable market] expansion beyond traditional hyperscalers," Lee articulated, referencing Nvidia's cutting-edge graphic processing units. Lee emphasized that the next major catalyst for Nvidia's stock re-rating will stem from a fresh narrative—one that excites the market about its earnings potential beyond its established business of selling AI GPUs to major cloud providers.
Nvidia is actively forging new partnerships and expanding its reach beyond conventional hyperscalers, a strategy Lee believes will be central to its future growth. He noted that the market is already well aware of the current GPU roadmap and anticipated pricing adjustments, making these new market expansions key to unlocking further value.
The stakes are particularly high for Wall Street. Nvidia shares have already climbed over 19% year-to-date, contributing significantly to the broader market's record highs. As the largest component of the S&P 500, with a staggering market cap exceeding $5 trillion, Nvidia's earnings report is set to be a defining moment for investors.
