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Investing.com - HSBC raised its price target on NVIDIA (NASDAQ:NVDA) to $200.00 from $125.00 on Wednesday, while maintaining a Hold rating on the stock. The semiconductor giant, currently valued at $4.29 trillion, maintains a "GREAT" financial health score according to InvestingPro analysis.
The firm cited a larger-than-expected addressable market for AI GPUs, driven by cloud service provider capital expenditure revisions of 37% year-to-date and growing enterprise and sovereign AI end markets.
HSBC expects NVIDIA to report second-quarter fiscal 2026 sales of $46.7 billion, slightly above management guidance of $45 billion and consensus estimates of $46.3 billion.
For the third quarter of fiscal 2026, the firm projects sales of $53.9 billion, in line with consensus estimates of $53.3 billion.
Despite the higher price target, HSBC expressed concerns about uncertainties in the Chinese market, including potential lower average selling prices due to revenue sharing with the U.S. administration and pushback from Chinese authorities on using U.S. chips.
In other recent news, Nvidia is preparing to release its fiscal second-quarter 2026 earnings report, which is anticipated to show strong results. KeyBanc has raised its price target for Nvidia to $215 from $190, maintaining an Overweight rating, while TD Cowen has increased its price target to $235 from $175, citing strong fundamentals and a smooth transition between Nvidia’s products. Deutsche Bank (ETR:DBKGn) has reiterated a Hold rating with a $155 price target ahead of the earnings release. The upcoming earnings report will be followed by a conference call to discuss the company’s performance. Analysts from KeyBanc expect Nvidia’s third-quarter guidance to be slightly below consensus due to uncertainties in direct revenue from China. Meanwhile, JPMorgan strategists have noted that Nvidia’s earnings, along with other events, could significantly impact U.S. equity markets. These developments highlight the ongoing interest and analysis surrounding Nvidia’s financial performance and market position.
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