HSBC makes a bold call on Nvidia stock – sees 80% upside

August 21, 2023 07:46 AM PDT | By Invezz

HSBC makes a bold call on Nvidia stock – sees 80% upside — Image source: Invezz

Nvidia stock could climb to $780

Frank Lee reiterated his “buy” rating on the chipmaker this morning and raised his price objective to $780 – about an 80% upside from here.

The analyst is convinced that the rising focus on artificial intelligence that has already delivered a huge boost to Nvidia stock year-to-date will continue to fuel a further rally in the coming months.

Although market expectations have clearly risen for Nvidia and the overall AI supply chain, we expect bullish AI server momentum continued to surpass market expectations.

Lee expects the multinational to come in ahead of Street estimates in its current financial quarter – the results of which it’s scheduled to report on the coming Wednesday.

Expectations for Nvidia’s second quarter

Consensus is for Nvidia Corp to earn $1.69 per share in its fiscal second quarter versus 32 cents a share only in the same quarter last year.

The HSBC analyst expects the Nasdaq-listed firm to record $12 billion in sales for its FY2Q24e. He also told clients in a research note on Monday:

Our sales [outlook] is 9% ahead of consensus due to more bullish datacentre forecast. We see strong demand that continues to outpace supply, especially with regard to AI GPU shipments.

Note that the chip giant pays a small dividend as well. Other firms that have reiterated bullish calls on Nvidia stock in recent days include Baird and KeyBanc.

The post HSBC makes a bold call on Nvidia stock – sees 80% upside appeared first on Invezz.

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