Key Takeaways
- Truist Securities maintained its Buy recommendation with a $287 target price on Nvidia before the company’s Q1 FY2027 report scheduled for May 20
- HSBC upgraded its target from $295 to $325, forecasting first-quarter revenue of $81.1 billion — exceeding Nvidia’s guidance by 4%
- For the second quarter, HSBC anticipates $91.1 billion in sales, significantly surpassing the $85.6 billion Street estimate
- Several Wall Street firms including BofA ($320), Cantor Fitzgerald ($350), and Evercore ISI ($352) continue recommending the stock with Buy or Outperform ratings
- HSBC boosted its fiscal 2028 earnings per share forecast by 27% to $13.01, based on elevated datacenter revenue projections of $528 billion
The chipmaker is set to unveil its fiscal 2027 first-quarter financial results this Wednesday, May 20, with Wall Street analysts expressing broad optimism.
Currently trading near $221, the stock has declined approximately 0.58% during today’s session. Nevertheless, expert opinion ahead of the earnings announcement remains decidedly upbeat.
William Stein from Truist Securities reaffirmed his bullish stance with a Buy rating and $287 target, emphasizing Nvidia’s position as a fundamental infrastructure supplier for artificial intelligence. He characterized the company’s CUDA ecosystem as essentially serving as an operating framework for AI models and related software.
Stein opted to leave his financial projections unchanged, maintaining both his estimates and valuation framework.
HSBC took a more assertive approach, increasing its target price from $295 to $325 while preserving its Buy designation. The investment bank anticipates Nvidia will deliver first-quarter sales of $81.1 billion — surpassing the company’s internal forecast of $78 billion by 4% and topping the consensus figure of $78.6 billion by 3%.
Looking to the second quarter, HSBC forecasts revenue reaching $91.1 billion versus Street expectations of $85.6 billion. Should this prediction prove accurate, it would represent a significant upside surprise.
HSBC additionally increased its fiscal 2028 earnings per share outlook by 27% to $13.01, positioning it 16% higher than the prevailing Wall Street consensus of $11.20.
Factors Driving Optimism
The upward adjustments stem primarily from datacenter market dynamics. HSBC elevated its FY2028 datacenter sales projection to $528 billion from $465.3 billion, reflecting an expansion in chip on wafer on substrate capacity from 900,000 to 1.1 million wafers.
BofA Securities upheld its Buy stance with a $320 target, anticipating Nvidia will exceed current revenue forecasts by 2–4%, translating to approximately $2 billion to $4 billion. BofA also highlighted market attention on potential shareholder returns and gross margin consistency near 75%.
Cantor Fitzgerald elevated its price objective to $350 while maintaining an Overweight recommendation, pointing to constrained computing supply and robust demand from agentic AI deployments.
Evercore ISI retained its Outperform rating alongside a $352 target. The firm observed sustained expansion in AI application development and spotlighted Nvidia’s NVLink technology as a premier scale-up interconnect solution in AI infrastructure.
DA Davidson similarly raised its target to $300, emphasizing the company’s advantageous positioning in compute hardware.
A Potential Concern to Monitor
HSBC did acknowledge that Nvidia’s shares have lagged the SOX semiconductor index during the past six months, despite delivering two consecutive earnings reports that exceeded expectations.
The investment bank suggested that AI GPU earnings momentum and the Vera Rubin product pipeline have diminished somewhat as catalysts for valuation expansion. HSBC observed that Nvidia now competes for cloud capital expenditure allocation with memory chip manufacturers, AI networking companies, and server CPU suppliers.
Emerging opportunities in agentic AI server processors and recent partnerships in optical technology were identified as potentially compelling narratives that could support future earnings revisions.
Nvidia’s shares trade at a price-to-earnings multiple of approximately 44.51 and a PEG ratio of 0.67, which Truist and other analysts cite as evidence that the valuation remains attractive relative to anticipated growth.
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