On Tuesday, HSBC upgraded Nvidia (NVDA.O) to “buy” from “reduce,” citing artificial intelligence potential.
According to Refinitiv data, only HSBC Head of Technology Research Frank Lee has a negative rating on Nvidia 48 analysts.
Nvidia leads the S&P 500 (.SPX) in 2023 with a 91% gain. Silicon Valley’s stock has recovered 150% since October.
Even as the global semiconductor sector struggles owing to economic concerns, investors are banking that Nvidia will lead the artificial intelligence computer wave.
We’re dropping our Reduce and double-upgrading Nvidia to Buy. Lee said in a client letter that its AI chip pricing power startled him. On Tuesday, Nvidia hit $281.10, its highest since March 2022. It closed at $279.23, up 3.4%.
Lee raised his objective to $355 from $175. The median price objective is $298.50.
As of midday on Tuesday, Refinitiv reported that Nvidia was Wall Street’s most-traded stock, trading at about $11 billion.
On Feb. 22, Nvidia CEO Jensen Huang told analysts that chatbots’ use of Nvidia hardware has “gone through the roof.”
Nvidia is the fifth most valuable business on Wall Street with a market cap of $687 billion, trailing only Apple (AAPL.O), Microsoft (MSFT.O), Alphabet (GOOGL.O), and Amazon (AMZN.O) and beating Tesla (TSLA.O) by $100 billion. However, Nvidia’s shares are 17% below their November 2021 record high.
