Key Takeaways
- Truist Securities maintained its Buy recommendation with a $287 price target for Nvidia prior to its Q1 FY2027 earnings release scheduled for May 20
- HSBC upgraded its price objective from $295 to $325, forecasting Q1 revenue of $81.1 billion — 4% higher than Nvidia’s internal guidance
- HSBC’s Q2 revenue projection stands at $91.1 billion, significantly surpassing the Wall Street consensus of $85.6 billion
- Several Wall Street firms including BofA ($320), Cantor Fitzgerald ($350), and Evercore ISI ($352) continue recommending the stock with Buy or Outperform ratings
- HSBC increased its FY2028 earnings per share forecast by 27% to $13.01, driven by elevated datacenter revenue expectations reaching $528 billion
With first-quarter fiscal 2027 results set for release on Wednesday, May 20, Nvidia continues to enjoy widespread support from the investment community.
Shares are currently hovering near $221, reflecting a modest 0.58% decline for the session. Nevertheless, analyst outlook remains decidedly upbeat as the earnings announcement approaches.
William Stein of Truist Securities maintained his Buy stance with a $287 price objective, emphasizing Nvidia’s critical position as an AI infrastructure backbone. He characterized the company’s CUDA platform as essentially serving as the operating system for AI models and related applications.
Stein left his financial projections unchanged, maintaining both his estimates and valuation framework.
HSBC took a more assertive approach, boosting its price target from $295 to $325 while retaining its Buy recommendation. The financial institution anticipates Nvidia will report Q1 revenue of $81.1 billion — representing a 4% premium over the company’s guidance of $78 billion and 3% above the $78.6 billion consensus figure.
Looking to Q2, HSBC forecasts $91.1 billion in revenue compared to consensus expectations of $85.6 billion. Such an outcome would represent a significant upside surprise.
HSBC additionally elevated its FY2028 EPS projection by 27% to $13.01, positioning it 16% above the prevailing Street consensus of $11.20.
Driving Forces Behind Analyst Confidence
The optimistic revisions stem primarily from robust datacenter demand. HSBC increased its FY2028 datacenter revenue estimate to $528 billion from $465.3 billion, reflecting an expansion in chip on wafer on substrate allocation from 900,000 to 1.1 million wafers.
BofA Securities sustained its Buy rating with a $320 target, anticipating Nvidia will surpass current revenue estimates by 2–4%, translating to approximately $2 billion to $4 billion. BofA also noted investor focus on potential shareholder returns and gross margin sustainability near the 75% level.
Cantor Fitzgerald elevated its price target to $350, maintaining an Overweight rating, pointing to constrained compute availability and robust demand stemming from agentic AI deployments.
Evercore ISI preserved its Outperform rating alongside a $352 price target. The firm emphasized ongoing expansion in AI application development and spotlighted Nvidia’s NVLink as a premier scale-up fabric within AI networking infrastructure.
DA Davidson similarly raised its target to $300, highlighting the company’s advantageous positioning in compute equipment markets.
A Notable Consideration for Investors
HSBC did observe that Nvidia’s shares have lagged the SOX index during the past six months, despite delivering two consecutive earnings reports that exceeded expectations.
The firm suggested that AI GPU earnings momentum and the Vera Rubin product roadmap have diminished as standalone catalysts for valuation expansion. HSBC acknowledged that Nvidia now competes for cloud capital expenditure allocations with memory manufacturers, AI networking suppliers, and server CPU vendors.
Emerging opportunities in agentic AI server CPUs and recent optics-related partnerships were identified as potential new narratives that could stimulate future earnings estimate revisions.
Nvidia’s shares trade at a P/E multiple of approximately 44.51 and a PEG ratio of 0.67, which Truist and other analysts cite as indication that valuation remains attractive relative to anticipated growth trajectories.
