New AI Peak! HSBC fiercely counters the AI bubble theory: NVIDIA's stock price can still soar by 80%

According to Zhitong Finance APP, following Wall Street financial giant Cantor Fitzgerald's seemingly crazy target stock price of $300, another strong bull has joined the bullish camp for NVIDIA (NVDA.US) stock. Based on the continuous explosive expansion of AI computing power infrastructure, financial giant HSBC has upgraded the stock rating of this "AI chip superpower" from "Hold" to "Buy," strongly countering the recent market trend of the "AI bubble theory." Even more significantly, HSBC has raised its target price for NVIDIA from $200 to $320, the highest level on Wall Street.

Based on NVIDIA's last trading day's closing price of $180.03, HSBC's new target implies that the stock price of NVIDIA, which ranks first in global market capitalization, has a massive upside potential of nearly 80%. If it reaches HSBC's target, NVIDIA's market capitalization will approach an astonishing approximately $8 trillion, while NVIDIA's current market capitalization is about $4.37 trillion, consistently ranking first in the global market capitalization list. This year, NVIDIA's stock price has repeatedly hit new highs, with a year-to-date increase of 40% as of 2025.

"We expect the total addressable market (TAM) for AI GPUs to continue to expand significantly beyond the ultra-large cloud computing vendors, leading to strong sustainable profit growth in the long term," wrote Frank Lee, a senior analyst at HSBC, referring to the overall addressable market for these high-performance AI chips that handle massive AI workloads. "This trend brings significant upside potential to NVIDIA's earnings expectations for fiscal year 2027."

Benefiting from the strong performance report of "lithography machine giant" ASML and the management's optimistic outlook on the AI boom, along with HSBC's seemingly crazy research report, NVIDIA's stock price rose 2.2% in pre-market trading, although it has seen a cumulative decline of about 6% over the past three trading days.

NVIDIA welcomes the latest bull, expecting significant upside potential—HSBC upgrades rating and gives the highest target price on Wall Street

With this latest upgrade, over 90% of analysts covering NVIDIA stock on Wall Street recommend "Buy" or "Add," while less than 8% give a neutral cautious rating equivalent to "Hold," and only one analyst recommends "Sell." In addition, Wall Street analysts have recently been continuously raising their average target price for NVIDIA stock, with the latest average target price around $220, which implies an average return potential of over 20% based on its last closing price, and the average target price suggests that it is only a matter of time before NVIDIA's market capitalization exceeds $5 trillion.

In its latest bullish research report, HSBC also reiterated its "Buy" rating for NVIDIA's long-time competitor—AMD (AMD.US)—and significantly raised its target price from $185 to $310, also the highest target price level on Wall Street. The stock rose 2.5% in pre-market trading.

Analyst Lee wrote that the recent deal the company reached with OpenAI "presents a more favorable bullish outlook" and enhances the clarity of performance forecasts as well as market bullish sentiment; he also added, "There may be further upside potential from pricing premiums and additional AI GPU shipment expansions in the future." As of the close of the previous trading day, AMD's stock price has risen 35% since October, with an increase of over 80% year-to-date.

A giant wave of AI infrastructure is sweeping in, and the "global stock king" NVIDIA continues to write the myth of AI computing power.

With NVIDIA recently announcing a partnership with long-time competitor Intel, as well as a plan to invest up to $100 billion in AI leader OpenAI, the two parties plan to jointly build a super AI data center with a computing power scale of at least 10 gigawatts (GW). The "myth of AI computing power" surrounding NVIDIA has reached a climax since September.

According to top Wall Street institutions such as Cantor Fitzgerald, HSBC, and Morgan Stanley, NVIDIA will still be the core beneficiary of the trillion-dollar wave of AI spending, and Wall Street believes that NVIDIA's stock price's repeated record highs are far from over, making the notion of an AI bubble absurd. Recently, Wall Street analysts have continuously raised NVIDIA's 12-month target stock price, with the latest average target price from Wall Street indicating that NVIDIA's total market value will break the $5 trillion milestone within a year.

As the "company with the highest market value in the world," NVIDIA is regarded as the "leader" of the global AI computing power industry chain. Therefore, both institutional and retail investors believe that NVIDIA's strong upward momentum, which continues to set new highs, signifies that the current "super bull market" in the global AI computing power industry chain is far from over, and this industry chain will remain the most favored investment sector for global capital in the near future.

It is precisely under the leadership of large tech giants such as NVIDIA, Meta, Google, Oracle, TSMC, and Broadcom, as well as the epic price surge of AI computing power industry chain leaders, along with the consistently strong performance this year, that an unprecedented AI investment boom has swept through the U.S. stock market and global stock markets, driving the S&P 500 index and the global benchmark index—MSCI World Index—up significantly since April, with recent continuous record highs.

Recently, the prices of high-performance storage products in the global DRAM and NAND series have surged, coupled with Oracle, the cloud computing giant, which recently announced a contract reserve far exceeding market expectations at $455 billion, and the globally highest-valued AI startup OpenAI, which has reached over $1 trillion in AI computing power infrastructure deals, collectively strengthening the "long-term bull market narrative" of AI GPU, ASIC, HBM, data center SSD storage systems, liquid cooling systems, and core power equipment. The AI computing power demand driven by generative AI applications and AI agents at the inference end can be described as "stars and seas," expected to drive the artificial intelligence computing power infrastructure market to continue showing exponential growth, with "AI inference systems" being the largest source of revenue for NVIDIA in the future, according to Jensen Huang The analyst team from Cantor Fitzgerald stated that the rapid and extremely widespread implementation of generative AI applications proves that this wave of AI is not a bubble in any sense. "In the past 12 months, global large recommendation systems have adopted generative AI. For example, search has shifted to generative AI. Social media has shifted to generative AI." "User-generated innovative content, AI-based advertising recommendation engines, everything has shifted from traditional machine learning to generative AI. Just from the large-scale migration from traditional computing to generative AI, NVIDIA has seen up to $2 trillion in capital expenditure. We are absolutely not in a bubble; on the contrary, the market is beginning to recognize how 'high-quality' AI can bring significant positive returns on investment." Cantor Fitzgerald wrote in a bullish report predicting NVIDIA's stock price to reach $300