Nvidia upgraded as HSBC sees AI driving nearly 80% upside

(Bloomberg/Ryan Vlastelica) — Nvidia Corp. added another bull on Wednesday, as HSBC upgraded the chipmaker to buy from hold, citing the ongoing growth of artificial intelligence.

HSBC also raised the price target on the stock to a Street-high of $320, up from $200. The new target implies upside of nearly 80% from Nvidia’s last close of $180.03. Hitting that target would translate to a market capitalization close to $8 trillion, compared with about $4.37 trillion currently.

“We expect AI GPU TAM to keep increasing beyond hyperscalers, leading to continuous earnings growth,” analyst Frank Lee wrote, referring to the total addressable market for the processing chips. “This trend creates “room for significant FY27e earnings upside,” referring to estimated earnings upside for fiscal year 2027.

Nvidia rose 2% on Wednesday. It has climbed more than 30% this year.

With the upgrade, more than 90% of the analysts tracked by Bloomberg recommend buying the stock. Fewer than 8% have the equivalent of hold ratings, while just one analyst recommends selling. The average price target on Nvidia shares is about $220, suggesting a return potential of more than 20% based on its Tuesday close.

HSBC also affirmed a buy rating on Advanced Micro Devices Inc. and boosted its price target on the stock from $185 to $310, another Street high. The stock rose 1.7% on Wednesday.

The company’s recent deal with OpenAI “paints a more favorable picture” and improves visibility, Lee wrote, adding that “there could be further upside driven by pricing premium as well as additional AI GPU volume.”

AMD is up more than 30% so far in October, bringing its year-to-date gain to about 85%.

(Updates to market open.)

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