Nvidia earnings expectations are high. Why HSBC expects the chipmaker to clear the bar
HSBC not only expects a strong quarterly report from Nvidia . It expects even stronger guidance from the chipmaker. The bank, which has a buy rating on the artificial intelligence chipmaker, increased its price target on the stock to $325 from $295. The new forecast signals upside of 46.2% upside from Monday’s close. Nvidia is scheduled to post fiscal first-quarter results Wednesday after the bell. Analysts polled by LSEG expect the company’s bottom line more than doubled from the year-earlier period, while revenue surged nearly 80%. NVDA YTD mountain Nvidia YTD HSBC’s Frank Lee isn’t worried, however. In fact, he expects Nvidia to exceed Q1 expectations and raise its second-quarter outlook — setting up the stock for even more upside ahead. “We expect the Blackwell momentum and Rubin ramp to sustain earnings momentum, with potential upside from [total addressable market] expansion beyond traditional hyperscalers,” Lee wrote, referring to the company’s top-of-the-line graphic processing units. “We believe that the next major re-rating for NVIDIA will be driven by a new narrative that can get the market excited about NVIDIA’s earnings opportunity beyond selling AI GPUs to traditional hyperscalers. NVIDIA has been actively making deals beyond traditional hyperscalers, and we believe that will remain the focus going forward, as the current GPU roadmap and the related pricing hikes along the road are fairly known to the market by now,” Lee wrote. Nvidia shares are up more than 19% year to date, giving the broader market a lift to record highs. The stock is also the largest in the S & P 500, with a market cap of more than $5 trillion — raising the stakes for Wall Street as the report approaches.
