Top HSBC analyst Frank Lee has upgraded NVIDIA (NVDA) stock to Buy from Hold, lifting his price target to $320 from $200. The new price target implies nearly 78% upside from Tuesday’s close of $180. Lee said the company’s strong product pipeline, broad customer base, and rising chip output make it one of the most promising stocks in the AI hardware space today.
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Analyst Lifts NVIDIA’s AI Revenue and Profit Forecasts
The 4-star analyst said NVIDIA’s AI data center business continues to expand faster than expected, creating room for “significant FY27 earnings upside.” The analyst now forecasts FY27 data center revenue at $351 billion, which he said is 36% above the Street’s consensus estimate of $258 billion. HSBC also raised its FY2027 earnings forecast for NVIDIA to $8.75 per share, higher than the market’s average forecast of $6.48.
Lee noted that this stronger financial outlook is backed by expanding demand across the global AI chip market.
AI Chip Demand Keeps Rising
Lee pointed to signs of an “ever-expanding AI GPU market,” with demand now coming not just from traditional cloud players like Amazon (AMZN) and Microsoft (MSFT), but also from new large-scale projects such as OpenAI and Stargate. He believes these could bring in $250–$400 billion in AI GPU sales over the next few years, showing how quickly the market is expanding.
HSBC also expects a sharp increase in NVIDIA’s GPU production at TSMC (TSM), with output projected to reach 700,000 wafers in FY2027, a 140% jump from current levels. Lee said this reflects strong industry demand and solid long-term visibility for NVIDIA’s high-end AI chips.
China’s Outlook Could Improve
Lee also said U.S.–China trade tensions remain a near-term risk but could ease in 2026 if new trade agreements are reached. He believes NVIDIA could see a rebound in China sales, even as local chipmakers like Huawei and Cambricon try to close the gap.
Is Nvidia Stock a Buy Right Now?
On TipRanks, Wall Street has a Strong Buy consensus rating on the stock based on 35 Buys, one Hold, and one Sell recommendation. The average NVDA stock price target of $225 indicates 24.98% upside potential. NVDA stock has rallied 34% year-to-date.
