This article first appeared on GuruFocus.
Oct 16 – Nvidia (NASDAQ:NVDA) gained fresh bullish momentum after HSBC raised its rating on the chipmaker to buy from hold, pointing to sustained demand for artificial intelligence processors, according to a recent note.
The bank lifted its price target to $320 from $200, marking the highest on Wall Street and implying an upside of nearly 80% from Wednesday’s close at $179.8. If reached, the valuation would push Nvidia’s market cap close to $8 trillion, up from roughly $4.4 trillion currently.
HSBC analyst Frank Lee said the total addressable market for AI GPUs is expected to grow beyond hyperscalers, supporting ongoing earnings expansion and leaving room for significant FY2027 upside. Nvidia shares rose about 2% Wednesday and have advanced more than 30% year-to-date.
The upgrade adds to a broad consensus, with over 90% of analysts tracked by Bloomberg maintaining buy ratings on the stock. The average target price now stands near $220, implying about 20% further upside.
HSBC also reaffirmed its buy stance on Advanced Micro Devices (AMD) and raised its target to $310 from $185, citing improving visibility following the company’s deal with OpenAI. AMD climbed nearly 2% Wednesday and has gained about 85% this year.