TLDR
- Truist Securities reiterated a Buy rating and $287 price target on Nvidia ahead of Q1 FY2027 earnings on May 20
- HSBC raised its price target from $295 to $325, expecting Q1 revenue of $81.1 billion — 4% above Nvidia’s own guidance
- HSBC also projects Q2 revenue of $91.1 billion, well above the $85.6 billion consensus estimate
- Multiple analysts including BofA ($320), Cantor Fitzgerald ($350), and Evercore ISI ($352) maintain Buy or Outperform ratings
- HSBC raised its FY2028 EPS estimate by 27% to $13.01, citing higher datacenter revenue expectations of $528 billion
Nvidia reports first-quarter fiscal 2027 earnings on Wednesday, May 20, and Wall Street is largely in its corner.
The stock is trading around $221, down about 0.58% on the day. Despite that, analyst sentiment heading into the print is firmly positive.
Truist Securities analyst William Stein reiterated his Buy rating and $287 price target, pointing to Nvidia’s role as a core infrastructure provider for AI. He described the company’s CUDA platform as effectively functioning as an operating system for AI models and applications.
Stein made no changes to his financial model, keeping his estimates and valuation intact.
HSBC moved more aggressively, lifting its price target from $295 to $325 while keeping a Buy rating in place. The bank expects Nvidia to post Q1 revenue of $81.1 billion — 4% above the company’s own guidance of $78 billion and 3% ahead of consensus at $78.6 billion.
For Q2, HSBC is projecting $91.1 billion in revenue against a consensus of $85.6 billion. That would be a substantial beat if it materializes.
HSBC also raised its FY2028 EPS estimate by 27% to $13.01, which sits 16% above the current Wall Street consensus of $11.20.
Why Analysts Are Bullish
The upward revisions are largely tied to datacenter demand. HSBC raised its FY2028 datacenter revenue estimate to $528 billion from $465.3 billion, driven by an increase in chip on wafer on substrate allocation from 900,000 to 1.1 million wafers.
BofA Securities maintained its Buy rating with a $320 price target, expecting Nvidia to beat current sales estimates by 2–4%, or roughly $2 billion to $4 billion. BofA also flagged investor interest in potential cash returns and gross margin stability around 75%.
Cantor Fitzgerald raised its price target to $350, keeping an Overweight rating, citing tight compute supply and strong demand from agentic AI applications.
Evercore ISI held its Outperform rating with a $352 price target. The firm noted continued growth in AI applications and highlighted Nvidia’s NVLink as a leading scale-up fabric in AI networking.
DA Davidson also raised its target to $300, pointing to strong positioning in compute equipment.
One Wrinkle Worth Watching
HSBC did flag that Nvidia’s stock has underperformed the SOX index over the last six months, even as the company posted two sets of results that beat expectations.
The firm suggested the AI GPU earnings momentum and the Vera Rubin product roadmap have become less compelling as re-rating catalysts on their own. HSBC noted Nvidia must now share cloud capex with memory makers, AI networking vendors, and server CPU providers.
New opportunities in agentic AI server CPUs and recent optics-related deals were flagged as potential emerging stories that could drive future earnings revisions.
Nvidia’s stock carries a P/E ratio of around 44.51 and a PEG ratio of 0.67, which Truist and others point to as evidence the valuation remains reasonable relative to growth.
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