Nvidia Stock: HSBC Adjusts Target Despite Growth Prospects

The chip giant Nvidia continues to attract investor attention as HSBC revises its price target slightly downward to $175, maintaining a buy recommendation with a 26% upside potential. The adjustment comes despite impressive projections, with analysts anticipating fourth-quarter fiscal 2025 revenue of $40 billion, surpassing consensus estimates of $38.2 billion. This optimistic outlook is primarily driven by the promising new Blackwell platform and strong international business performance, with expectations of revenue further climbing to $42.2 billion in the subsequent quarter. The company's global presence has proven advantageous, demonstrating robust performance despite dollar strength challenges.

Market Challenges and Competition

While Nvidia recently reported remarkable quarterly results, including a 93.61% revenue surge to $35.08 billion and more than doubled earnings per share to $0.79, the stock has shown some volatility, trading below its 52-week high of $153.13. Market participants express concerns about potential headwinds, particularly from the emerging Chinese AI sector and tightened export restrictions, which could impact the company's market dominance in the evolving global AI landscape.