HSBC cuts price target on Nvidia by $10

Investing.com -- HSBC lowered its price target on NVIDIA Corporation (NASDAQ: NVDA) by $10 to $175 due to adjustments to its data center revenue forecasts. Though the brokerage reiterated its 'Buy' rating on the stock given Blackwell platform which it expects will offset a slower-than-expected GB200 ramp.

HSBC’s target is based on a PE ratio slightly below Nvidia’s five-year average but above the highest valuation seen for similar chip companies, implying a 26% upside.

While supply chain issues continue to impact GB200 shipments, HSBC expects Nvidia to offset this with stronger B200 GPU sales in the first half of fiscal 2026, supporting Blackwell revenue momentum.

“Nvidia (is) unlikely to disappoint on 4QFY25 sales and 1QFY26 guidance as Blackwell revenue to be supported by B200 ramp,” analyst at HSBC said.

The firm projects Nvidia's fourth-quarter fiscal 2025 revenue at $40 billion, above consensus estimates of $38.2 billion, with first-quarter fiscal 2026 revenue expected to reach $42.2 billion.

Despite concerns over AI GPU demand, an increased capital expenditure plans from major cloud service providers, will boost Nvidia’s growth outlook.

However, HBSC sees Nvidia’s performance in the second half of fiscal 2026 as increasingly tied to the success of its B300/GB300 roadmap.

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