All eyes will be on Nvidia (NVDA) tomorrow as the AI chip giant reports its latest quarterly earnings. As one of the biggest AI companies, Nvidia’s report is expected to give investors a fresh look at AI chip demand and data center spending. Ahead of the results, top HSBC analyst Frank Lee raised his price target on Nvidia stock to $325 from $295 while keeping a Buy rating. The analyst expects Nvidia to deliver another “beat and raise” quarter, helped by strong demand for its AI GPUs and data center products.
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New trading tool for NVDA bearsHSBC Expects Another Strong Quarter
Lee expects first-quarter revenue of $81.1 billion, above both Nvidia’s guidance and Wall Street estimates near $78 billion. He also forecasts second-quarter revenue of $91.1 billion, well above consensus estimates of $85.6 billion.
According to Lee, Nvidia continues benefiting from rising AI spending by major cloud companies, while demand for Blackwell and Rubin AI chips remains strong. The analyst also raised his fiscal 2028 earnings estimate by 27% to $13.01 per share after increasing his data center revenue forecasts.
However, Lee noted that investors may now be looking for Nvidia’s next big growth driver beyond its main AI GPU business. While Nvidia stock has surged over 600% over the past three years on booming AI chip demand, the analyst believes newer areas like AI server CPUs and optics products could become more important for future growth.
Nvidia Still Leads the AI Market
HSBC also said Nvidia continues benefiting from rising AI infrastructure spending, although the company now faces more competition for data center spending from memory makers, networking firms, and server CPU companies.
Even so, Wall Street remains largely bullish on Nvidia stock ahead of earnings, as investors continue watching whether the company can maintain its strong AI growth through 2026.
Is Nvidia Stock Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months. Furthermore, the average 12-month Nvidia price target of $281.97 per share implies 26.8% upside potential.
