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January 13, 2025

HSBC Lowers NVIDIA Price Target Amid Datacenter Concerns

HSBC analyst Frank Lee has reduced NVIDIA’s price target from $195 to $185 while retaining a Buy rating. This revision comes in light of expected challenges in the datacenter segment, which could affect NVIDIA’s earnings forecasts despite the companyโ€™s solid financial foundation.

Despite the price target reduction, NVIDIA has showcased remarkable revenue growth of 152% in the last year. Analysts indicate that even with lower projections, the firm maintains a robust market capitalization of $3.33 trillion.

Key metrics indicate that NVIDIA can withstand market pressures while still delivering an EPS above consensus, confirming its standing as a semiconductor industry leader. Investors should focus on NVIDIA’s strategic moves and product pipeline as these factors will play a critical role in navigating the current economic landscape.

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