HSBC Lowers NVIDIA Price Target to $175, Maintains Buy Rating

HSBC analyst Frank Lee has lowered NVIDIA's (NASDAQ:NVDA) price target from $195 to $175 while maintaining a Buy rating, reflecting anticipated challenges in the first half of fiscal year 2026. Despite this reduction, the analyst's assessment of NVIDIA's long-term growth prospects remains positive, highlighting the company's strong financial fundamentals and leadership in the semiconductor industry.



NVIDIA has delivered an impressive 152% revenue growth over the last twelve months, demonstrating the company's robust financial health. According to InvestingPro data, NVIDIA holds a perfect Piotroski Score of 9, indicating financial robustness. The company's market capitalization stands at $3.33 trillion, solidifying its position as a semiconductor industry leader.

HSBC revised its fiscal 2026 EPS estimate down by 6% due to a slower rollout of the Blackwell platform in the first half of the year. However, the analyst still projects an EPS of $5.74, which is 28% above the consensus estimate. This suggests that NVIDIA's earnings per share are expected to remain strong, even in the face of short-term challenges.

In a bear-case scenario, even with a conservative deployment of 20,000 to 25,000 AI server racks, NVIDIA's EPS would still exceed the market consensus. The bear-case EPS is projected to be 8-14% above the consensus EPS of $4.50, further validating the company's strong financial fundamentals and resilience.



Despite the reduction in the price target, HSBC's Buy rating indicates that the analyst believes NVIDIA's long-term growth prospects remain intact. The revised price target reflects caution in the datacenter segment but highlights significant upside potential for investors.

In conclusion, while HSBC has lowered NVIDIA's price target due to anticipated short-term challenges, the analyst's Buy rating and positive long-term outlook underscore the company's strong financial fundamentals and leadership in the semiconductor industry. Investors should remain confident in NVIDIA's ability to navigate short-term headwinds and capitalize on its long-term growth prospects.