Key Takeaways
- Truist Securities maintains Buy rating with $287 price target on Nvidia before Q1 FY2027 results scheduled for May 20
- HSBC upgraded its price objective from $295 to $325, forecasting Q1 revenue of $81.1 billion — exceeding Nvidia’s guidance by 4%
- HSBC anticipates Q2 revenue reaching $91.1 billion, surpassing consensus estimates of $85.6 billion
- Several major banks including BofA ($320), Cantor Fitzgerald ($350), and Evercore ISI ($352) hold Buy or Outperform ratings
- HSBC boosted its FY2028 EPS forecast by 27% to $13.01, driven by elevated datacenter revenue projections of $528 billion
Nvidia’s first-quarter fiscal 2027 financial results arrive Wednesday, May 20, and the investment community maintains a predominantly optimistic stance.
Shares currently trade near $221, reflecting a roughly 0.58% decline for the session. Nevertheless, Wall Street analysts express strong confidence leading into the earnings announcement.
William Stein from Truist Securities reaffirmed his Buy recommendation with a $287 price objective, emphasizing Nvidia’s position as a foundational infrastructure provider in artificial intelligence. He characterized the company’s CUDA platform as essentially serving as an operating system for AI models and related applications.
Stein left his financial projections unchanged, maintaining his existing estimates and valuation framework.
HSBC adopted a more aggressive stance, elevating its price target from $295 to $325 while retaining its Buy rating. The investment bank anticipates Nvidia will report Q1 revenue of $81.1 billion — exceeding the company’s internal guidance of $78 billion by 4% and topping the consensus estimate of $78.6 billion by 3%.
Looking to Q2, HSBC forecasts revenue of $91.1 billion compared to the consensus projection of $85.6 billion. Such results would represent a significant outperformance if achieved.
HSBC additionally increased its FY2028 EPS projection by 27% to $13.01, positioning it 16% above the current Street consensus of $11.20.
Factors Driving Analyst Optimism
The upward estimate adjustments stem primarily from datacenter market dynamics. HSBC elevated its FY2028 datacenter revenue projection to $528 billion from $465.3 billion, reflecting increased chip on wafer on substrate capacity from 900,000 to 1.1 million wafers.
BofA Securities preserved its Buy stance with a $320 price target, anticipating Nvidia will exceed current sales projections by 2–4%, translating to approximately $2 billion to $4 billion. BofA also noted market attention on potential capital return strategies and gross margin maintenance around the 75% level.
Cantor Fitzgerald elevated its price target to $350, retaining an Overweight rating, pointing to constrained compute availability and robust demand from agentic AI deployments.
Evercore ISI maintained its Outperform rating with a $352 price objective. The firm observed ongoing expansion in AI application adoption and spotlighted Nvidia’s NVLink as a premier scale-up fabric in AI networking infrastructure.
DA Davidson similarly raised its target to $300, emphasizing strong competitive positioning in compute hardware.
A Potential Concern on the Horizon
HSBC did observe that Nvidia’s shares have trailed the SOX index performance over the past six months, despite delivering two consecutive earnings reports that exceeded expectations.
The firm suggested that AI GPU earnings momentum and the Vera Rubin product timeline have diminished as compelling re-rating catalysts by themselves. HSBC noted Nvidia now competes for cloud capital expenditure allocation with memory manufacturers, AI networking companies, and server CPU suppliers.
Emerging opportunities in agentic AI server CPUs and recent optics-related partnerships were identified as potential new narratives that could fuel future earnings estimate increases.
Nvidia’s shares trade at a P/E ratio of approximately 44.51 and a PEG ratio of 0.67, which Truist and other analysts cite as evidence that valuation remains attractive relative to growth prospects.
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