HSBC Upgrades NVIDIA Corporation (NVDA) To Buy, Lifts Price Target to $320

NVIDIA Corporation (NASDAQ:NVDA) is among the 14 Best Big Name Stocks to Invest in Right Now. On October 15, HSBC analysts led by Frank Lee upgraded the stock to Buy from Hold, citing their expectation that the total addressable market (TAM) for AI GPUs will continue to increase beyond hyperscalers, which should result in continuous earnings growth.

The firm also lifted its price target for the stock to $320 from $200, representing an upside of nearly 78% from Tuesday’s close. Lee and his team said they had made the adjustments on the back of increasing FY27 estimates for GPU TAM compared to previous expectations, resulting in an upward revision in their data center revenue forecast for FY27 to $351 billion, which is 36% above consensus projections.

The HSBC analysts also anticipate that a potential trade deal between the United States and China could result in easing of China GPU uncertainties, which could help NVIDIA Corporation (NASDAQ:NVDA) see a demand recovery in the Chinese market.

Moreover, the analysts raised their earnings forecast for Nvidia in FY27 to $8.75 per share, higher than the average street projections of $6.48. They said that this encouraging outlook was backed by surging demand across the global AI chip market.

NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.