Key Takeaways
- Ahead of May 20 Q1 FY2027 earnings, Truist Securities maintained its Buy rating on Nvidia with a $287 price target
- HSBC upgraded its price target to $325 from $295, forecasting Q1 revenue of $81.1 billion — exceeding Nvidia’s guidance by 4%
- For Q2, HSBC anticipates $91.1 billion in revenue, significantly above the Street’s $85.6 billion estimate
- Several firms including BofA ($320), Cantor Fitzgerald ($350), and Evercore ISI ($352) hold Buy or Outperform stances
- HSBC boosted its FY2028 EPS forecast 27% to $13.01, driven by elevated datacenter revenue projections of $528 billion
Nvidia’s first-quarter fiscal year 2027 results are scheduled for release on Wednesday, May 20, with Wall Street analysts expressing widespread optimism.
Shares are currently hovering near $221, reflecting a modest 0.58% decline during the session. Nevertheless, analyst outlooks entering the earnings release remain decidedly upbeat.
Truist Securities’ William Stein reaffirmed his Buy recommendation and $287 target, emphasizing Nvidia’s position as a foundational AI infrastructure supplier. Stein characterized the company’s CUDA platform as essentially serving as the operating system backbone for AI models and their applications.
Stein maintained his existing financial projections without modification, keeping both estimates and valuation unchanged.
HSBC took a more pronounced stance, elevating its target from $295 to $325 while retaining a Buy recommendation. The investment bank anticipates Nvidia will deliver Q1 revenue of $81.1 billion — representing a 4% premium over the company’s $78 billion guidance and 3% above the $78.6 billion Street consensus.
Looking to Q2, HSBC forecasts $91.1 billion in sales versus the consensus figure of $85.6 billion. Should this projection prove accurate, it would represent a significant outperformance.
HSBC additionally increased its FY2028 earnings per share outlook by 27% to $13.01, positioning it 16% above Wall Street’s current $11.20 consensus.
What’s Driving Analyst Optimism
The upward estimate adjustments stem primarily from datacenter momentum. HSBC elevated its FY2028 datacenter revenue projection to $528 billion from $465.3 billion, underpinned by an expansion in chip on wafer on substrate capacity from 900,000 to 1.1 million wafers.
BofA Securities kept its Buy rating alongside a $320 target, projecting Nvidia will exceed current revenue forecasts by 2–4%, translating to approximately $2 billion to $4 billion. BofA also highlighted investor focus on potential capital allocation decisions and gross margin sustainability near the 75% level.
Cantor Fitzgerald lifted its target to $350 with an Overweight rating maintained, pointing to constrained compute availability and robust demand stemming from agentic AI deployments.
Evercore ISI preserved its Outperform rating with a $352 target. The firm emphasized ongoing expansion in AI application development and spotlighted Nvidia’s NVLink as the premier scale-up interconnect technology in AI infrastructure.
DA Davidson similarly increased its objective to $300, citing advantageous positioning within compute hardware markets.
A Potential Concern to Monitor
HSBC did acknowledge that Nvidia shares have lagged the SOX semiconductor index during the past six months, despite the company delivering two consecutive quarters of better-than-expected results.
The firm suggested that AI GPU earnings momentum and the Vera Rubin product development timeline have diminished as standalone revaluation catalysts. HSBC observed that Nvidia now competes for cloud capital expenditure alongside memory manufacturers, AI networking companies, and server CPU suppliers.
Emerging opportunities in agentic AI server processors and recent optical component partnerships were identified as potentially compelling narratives that could fuel future estimate revisions.
Nvidia shares currently trade at a P/E multiple near 44.51 and a PEG ratio of 0.67, which Truist and other analysts cite as evidence the valuation remains attractive relative to anticipated growth.
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