Nvidia Gets Major Upgrade as AI Chip Superiority Continues
Nvidia stock rises 2.2% in premarket trading as analysts remain bullish on AI chip demand. HSBC upgrades to Buy with $320 target, citing strong earnings potential through 2027.
Stock Performance: Nvidia (NVDA) shares jumped 2.2% to $183.95 in premarket trading Wednesday, recovering from Tuesday's 4.4% decline that followed an AMD-Oracle partnership announcement raising competition concerns.
Analyst Confidence:
• Oppenheimer maintains Outperform rating with $225 price target, citing Nvidia's superior performance-per-watt efficiency for AI workloads compared to competitors.
• HSBC upgraded Nvidia from Hold to Buy with an impressive $320 price target (up from $200), forecasting significant earnings growth through fiscal 2027.
Performance Advantage: Nvidia's GB200 NVL72 AI server outperformed AMD's offerings in newly-released SemiAnalysis InferenceMAX benchmarks, demonstrating superior performance and efficiency for AI model processing.
Strong Market Demand: U.K.-based Nscale Global Holdings announced deployment of 116,600 Nvidia GPUs across Texas and Portugal facilities through a Microsoft AI infrastructure partnership.
Bullish Outlook:
• HSBC projects fiscal 2027 earnings per share at $8.75—significantly above consensus estimates of $6.48—driven by aggressive chip production forecasts at TSMC (TSM).
• Potential U.S.-China trade deal could unlock additional demand from Chinese markets, though current estimates exclude China revenue.
AMD Stock Price Targets Raised: Oracle and OpenAI Partnerships Drive Optimism
Major analysts also raise AMD price targets to $270-$310 citing new partnerships with Oracle and OpenAI that promise significant GPU revenue growth in 2026 and beyond.
• HSBC upgrades AMD from $185 to $310 while maintaining a Buy rating, signaling strong confidence in the chipmaker's future performance.
• Wedbush increases target to $270 from $190 with an Outperform rating ahead of quarterly earnings, highlighting improved visibility into GPU demand.
• Oracle partnership announced – Oracle Cloud will deploy 50,000 AMD MI450 GPUs starting in Q3 2026, with plans to expand significantly in 2027 and beyond.
• OpenAI collaboration confirmed – AMD secures another major AI customer, diversifying its revenue streams beyond traditional competitors.
• GPU revenue outlook strengthens – New agreements provide greater certainty around future sales in the booming artificial intelligence market.
Sector Performance: Broader chip sector rally: AMD (AMD) up 2.5%, Broadcom (AVGO) gaining 2.25% in premarket trading.