Nvidia Upgraded as HSBC Sees AI Driving Nearly 80% Upside

Core Viewpoint - HSBC upgraded Nvidia Corp. to a buy rating from hold, citing the growth of artificial intelligence as a key driver for the company's future performance [1][2]. Group 1: Analyst Upgrades and Price Targets - HSBC raised Nvidia's price target to $320 from $200, indicating a potential upside of nearly 80% from its last close of $180.03 [1]. - The upgrade aligns with a broader positive sentiment, as over 90% of analysts tracked by Bloomberg recommend buying Nvidia stock, with an average price target of about $220, suggesting a return potential of more than 20% [3]. Group 2: Market Trends and Earnings Growth - The total addressable market (TAM) for AI GPUs is expected to continue growing beyond hyperscalers, leading to continuous earnings growth for Nvidia [2]. - Analyst Frank Lee noted that this trend creates significant earnings upside potential for fiscal year 2027 [2]. Group 3: Competitive Landscape - HSBC also upgraded Advanced Micro Devices Inc. (AMD) to a buy rating, raising its price target from $185 to $310, reflecting a similar bullish outlook in the semiconductor space [3]. - AMD has seen a year-to-date gain of about 85%, with a notable increase of over 30% in October alone [4].