Nvidia (NASDAQ:NVDA) remains the undisputed leader of the artificial intelligence (AI) chip boom, powering everything from ChatGPT to self-driving cars. Now, the company is once again in the spotlight as HSBC raised its Nvidia price target to a Street-high $320, reigniting investor enthusiasm for the stock.
But with shares already up nearly 75% over the past six months, investors are asking the big question: Is there still room to run, or is NVDA due for a breather?
Nvidia’s Role in the AI Revolution
Headquartered in Santa Clara, California, Nvidia has evolved far beyond its gaming roots. The company’s powerful GPUs have become the backbone of modern AI infrastructure, powering advanced data centers, cloud platforms, and generative AI systems.
Nvidia’s proprietary CUDA software ecosystem has helped cement its dominance. By locking in developers and researchers, the company created a deep moat that keeps competitors like Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) scrambling to catch up.
As AI adoption accelerates, Nvidia’s chips have become indispensable across industries—from robotics to healthcare—making it the go-to play in AI hardware.
A Closer Look at Nvidia’s Latest Earnings
The optimism surrounding Nvidia’s price target hike is backed by stellar financial performance. In its fiscal Q2 2026 report, the chipmaker posted $46.7 billion in revenue, up 56% year-over-year. Adjusted earnings per share surged 54% to $1.05, easily surpassing Wall Street expectations.
The real growth engine was the data center segment, which brought in a record $41.1 billion, fueled by robust demand for Nvidia’s new Blackwell architecture. Its networking division also soared, hitting a record $7.3 billion thanks to Spectrum-X Ethernet and InfiniBand solutions.
Nvidia’s gross margins climbed to 72.7%, reflecting its strong pricing power and product mix. Looking ahead, management expects Q3 revenue around $54 billion, plus or minus 2%, and announced a massive $60 billion share buyback, underscoring confidence in continued growth.
HSBC Boosts Nvidia Price Target to $320
HSBC’s bullish move sent waves across Wall Street. The bank upgraded Nvidia from “Hold” to “Buy” and raised its Nvidia price target from $200 to $320—one of the highest forecasts among major institutions.
Analyst Frank Lee highlighted several key drivers behind the call:
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Expanding global demand for AI GPUs.
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Easing geopolitical risks with China.
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Rising chip supply and improving wafer capacity at Taiwan Semiconductor (NYSE:TSM).
If realized, the $320 target would push Nvidia’s market capitalization toward $8 trillion, cementing its dominance as the world’s most valuable semiconductor company.
Can NVDA Stock Go Higher?
Despite its meteoric rise, analysts believe Nvidia’s story isn’t over. The stock trades at 43.16 times forward earnings, high but reasonable given its double-digit growth outlook. Its PEG ratio of 1.31 suggests the valuation may actually be justified when factoring in earnings potential.
Technically, NVDA’s Relative Strength Index (RSI) has cooled to around 49, indicating a pause rather than a peak. Short-term traders may see consolidation, but long-term investors could view it as a healthy reset.
Among 47 analysts tracking Nvidia, 40 rate it a “Strong Buy,” while only one advises a “Strong Sell.” The average price target sits at $222, representing a potential 19% upside. HSBC’s forecast of $320, however, implies a possible 72% rally if AI demand remains red-hot.
The Bottom Line
The latest Nvidia price target boost underscores continued optimism about the company’s AI-driven future. With record earnings, expanding market share, and robust investor confidence, Nvidia’s leadership in the AI chip race appears secure.
That said, valuation risks remain. Investors should keep an eye on trade policy developments and supply chain dynamics before jumping in at current levels.
For those with a long-term horizon, Nvidia still looks like the ultimate AI powerhouse—and HSBC’s bold $320 target may not be the last time Wall Street raises the bar.
Featured Image – Megapixl
