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HSBC: NVIDIA’s (NVDA) AI GPU Market to Keep Expanding Beyond Hyperscalers
NvidiaNvidia(US:NVDA) Yahoo Finance·2025-10-18 22:31

Core Viewpoint - NVIDIA Corporation is being closely monitored by analysts as a leading AI stock, with HSBC upgrading its rating to Buy and raising the target price to $320 per share from $200, driven by the expanding AI GPU total addressable market [1] Group 1: Market Potential - The total addressable market for GPUs is expected to increase significantly by fiscal year 2027, particularly due to NVIDIA's partnerships with OpenAI and Stargate [2] - HSBC analyst Frank Lee revised the data center estimates for NVIDIA to $351 billion, which is 36% higher than consensus estimates, indicating strong growth potential [2] - A potential recovery in the Chinese market could further enhance NVIDIA's demand, especially in light of easing uncertainties related to US-China trade [3] Group 2: Product Allocation and Revenue Growth - Analysts have raised NVIDIA's fiscal 2027 estimate for Chip on Wafer on Substrate (CoWoS) allocation to 700K from 480K, marking a significant rebound in CoWoS wafer allocation momentum since Q4 2025 [3] - The aggressive fiscal 2027 estimates for CoWoS wafer forecasts at TSM are expected to trigger upward revisions in fiscal 2027 datacenter revenues, reinforcing the view of a rapidly expanding AI GPU market [4] Group 3: Company Overview - NVIDIA specializes in AI-driven solutions, providing platforms for data centers, self-driving cars, robotics, and cloud services, positioning itself as a key player in the AI industry [4]