From Financial Modeling Prep: 2025-01-13 04:48:27

HSBC analyst Frank Lee lowered NVIDIA’s price target to $185 due to anticipated challenges in the first half of fiscal year 2026, maintaining a Buy rating. The company’s strong financial health is a key factor in this adjustment.

NVIDIA has shown impressive revenue growth of 152% over the last twelve months, with a perfect Piotroski Score of 9. The company remains a leader in the semiconductor industry with a market capitalization of $3.33 trillion.

Revised projections for fiscal 2026 include a datacenter revenue estimate of $236 billion, down from $253 billion, and an expected deployment of 35,000 AI server racks, reduced from 41,500.

Even in a bear-case scenario of deploying 20,000 to 25,000 AI server racks, NVIDIA’s EPS would still exceed market consensus, with a projected EPS of $5.74, 28% above the consensus estimate.

Despite a 6% revision in the fiscal 2026 EPS estimate, HSBC projects an EPS of $5.74, 28% above the consensus estimate, reflecting a slower rollout of the Blackwell platform in H1.

NVIDIA’s strong financial fundamentals and leadership in the semiconductor industry support its long-term growth prospects, despite short-term challenges. The revised price target reflects caution in the datacenter segment but highlights significant upside potential for investors.



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