Nvidia stock rises on HSBC upgrade as analyst sees 'continuous earnings growth'

Core Insights - Nvidia's stock rose over 2% following HSBC's upgrade from Hold to Buy, driven by resilient earnings growth and a positive outlook for AI chip demand [1] - HSBC analyst Frank Lee anticipates significant revenue potential for Nvidia, estimating up to $400 billion from projects backed by OpenAI and other emerging players [1][2] - The total addressable market (TAM) for Nvidia's AI GPUs is expected to expand beyond hyperscalers, contributing to continuous earnings growth [2] Financial Projections - HSBC raised Nvidia's price target to $320 from $200, while shares were trading around $182 [2] - Citi analysts project OpenAI's AI infrastructure spending could reach $1.3 trillion by 2030, with expected revenue of $163 billion for OpenAI [3] Market Concerns - There are concerns regarding OpenAI's ability to meet its commitments that are driving optimism for Nvidia's future demand [3] - Potential issues with the US energy infrastructure scaling to meet the power needs of new AI projects have been raised [4] Strategic Developments - An investor consortium, the Artificial Intelligence Infrastructure Partnership (AIP), plans to acquire Aligned Data Centers for approximately $40 billion, which will enhance Nvidia's position in the AI infrastructure market [5] - Aligned Data Centers operates over 50 campuses across the US and South America, catering to the growing demand for AI data centers [6]