HSBC Upgrades Nvidia Stock to Buy, Target Price Raised to $320 – A 78% Upside Potential

Nvidia’s shares went up on Wednesday after getting a big boost from HSBC, who upgraded the semiconductor giant’s stock to a Buy from Hold and increased its price target to a Street-high of $320 from $200. This new target suggests an upside potential of approximately 78% from Nvidia’s last close of $180.03, pricing the company at almost $8 trillion. 

This is such a price that would make Nvidia not only the most valuable semiconductor firm on the planet but also among the most valuable publicly traded firms in history.

Also, the upgrade spurred a 2.7% premarket jump, which further added to Nvidia’s 34% year-to-date increase. HSBC’s positive forecast is a sign of renewed enthusiasm for Nvidia’s future, as the demand for artificial intelligence (AI) hardware remains on the rise and global interest in high-performance GPUs remains persistent.

Growing AI Chip Market & China Demand

In a note, HSBC analyst Frank Lee pointed out that Nvidia’s growth path is still inseparably linked to the rapid development of the AI GPU total addressable market (TAM). As per Lee’s view, the TAM is expanding beyond the usual hyperscale cloud providers and involves enterprise, research, and edge-computing cases. All these markets are where Nvidia’s chips have a commanding position.

Lee estimated “room for significant FY27e earnings upside”, which emphasizes upon Nvidia’s dominant place in AI chip revenue during the current generative AI adoption wave. The brokerage also believed that the improving U.S-China trade relations could provide a favorable situation, which can ease up the existing limitations on advanced chip exports.

Lee said,

“We 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”.

As Nvidia provides GPUs that drive industry leading models from OpenAI, Anthropic, and xAI, HSBC’s positivity highlights the firm’s central role in the AI ecosystem.

Analyst Consensus

HSBC’s upgrade is a small part of increasing optimistic voices on Wall Street. More than 90% of analysts currently rate Nvidia as a Buy, less than 8% have neutral ratings, and just one analyst suggests selling. The average price target of 66 analysts following LSEG is $214.50, which implies more than 20% appreciation from Nvidia’s last close.

Such overwhelming correspondence captures analysts’ collective trust in Nvidia’s long-term value, especially with its expansion beyond GPU manufacturing into development of AI infrastructure. 

Also, Nvidia has recently partnered with BlackRock, Microsoft, and xAI in a $40 billion purchase of Aligned Data Centers. This acquisition reflects its strategic goal to influence the AI environment on a broad level, from chip design to the infrastructure that supports AI activities.

Industry Enjoys the AI Boom

Nvidia’s rally also boosted the overall sentiment of the semiconductor industry. ASML Holding NV exceeded estimates for third-quarter orders and operating income, and it stimulated gains among the big chipmakers. Advanced Micro Devices (AMD) also took a clue from Nvidia, and climbed 2.6% in the premarket trading. It added to its 35% rally in October, with year-to-date returns now being above 80%. HSBC reiterated its Buy recommendation on AMD, along with lifting its target price to $310 from $185. HSBC also mentioned that AMD’s collaboration with OpenAI enhances the company’s position in the AI GPU market.

Lee further added that pricing premiums and volume expansion can propel further upside for AMD. While AI investment speeds up across the world, HSBC’s provocative call is an indication of faith that Nvidia, and the wider chip industry, is still at the heart of one of the most potent and revolutionary growth in tech history.

Bottom Line

Nvidia’s most recent upgrade by HSBC only confirms what most investors have already started to realize that the revolution of AI is hardly losing steam, and Nvidia remains its unchallenged champion. With demand for GPUs increasing, new collaborations being formed, and investments in AI infrastructure growing, Nvidia’s future is more impressive and rewarding than ever. 

Also, investors appear willing to ignore worries over valuation, competition, and geopolitical instability since Nvidia has been able to lead in every situation of ups and downs. Its alliance with OpenAI, its deal with Microsoft, and even data center purchase reflects upon a strategic diversification beyond chips and into AI infrastructure.

HSBC’s upgrade is simply affirming a plain fact that Nvidia has emerged as the pioneer of the AI era, and maybe is the single most impactful company in defining the next technological era. But there is a possibility that the more Wall Street gives credit to Nvidia, the more difficult it can be for the firm to fulfill its own legendary story. 

The bar continues to get higher, and so do expectations, but if there is any firm that has demonstrated the endurance and creativity to rationalize its hype, it’s Nvidia. Whether or not $320 is reality or another milestone, Nvidia is leading the way towards the AI revolution.