Nvidia stock rose over 2% as HSBC upgraded shares to Buy, citing resilient earnings growth. Analyst Frank Lee expects Nvidia’s AI chip market to grow beyond Big Tech customers, boosted by projects like Stargate. New business from emerging players and sovereign AI projects will drive continuous earnings growth.

Lee raised his price target on shares to $320 from $200, with Nvidia shares trading around $182 Wednesday morning. Some analysts express concern over OpenAI’s ability to fulfill commitments that are driving optimism for future Nvidia chip demand. Citi estimates OpenAI’s AI infrastructure spending could reach $1.3 trillion by 2030.

There’s concern the US may not scale up its energy infrastructure in time to meet the power needs of recent AI projects. Nvidia’s Wednesday gain helped recover losses from the prior day, attributed to tech-led stock declines amid US-China trade tensions. The market action followed news of a significant AI infrastructure deal involving Nvidia.

An investor consortium including Nvidia, BlackRock, Microsoft, UAE-based MGX, and Elon Musk’s xAI announced the acquisition of Aligned Data Centers, valuing it at around $40 billion. The Texas-based company has over 50 data center campuses across the US and South America. Big Tech continues to invest heavily in AI data centers to support artificial intelligence models.

Read more at Yahoo Finance: Nvidia stock rises on HSBC upgrade as analyst sees ‘continuous earnings growth’