HSBC analysts are betting Nvidia will not only deliver a strong quarterly report but also issue even stronger forward guidance, according to CNBC. The call comes as market expectations for the chipmaker remain extraordinarily high amid the AI boom.
Nvidia has consistently surpassed analyst estimates in recent quarters, driven by insatiable demand for its AI-focused GPUs. The company's dominance in the AI chip market has made its earnings releases a bellwether for the broader tech sector and AI trade.
HSBC's forecast hinges on expectations of sustained data center revenue and enterprise AI adoption. The bank's optimism suggests Nvidia may once again raise its own revenue guidance, a pattern that has become a hallmark of its recent reports.
A stronger-than-expected report could further fuel the AI rally, while disappointing numbers might trigger a sharp selloff. The chipmaker's results also carry implications for the entire AI supply chain, from data center operators to cloud providers.
However, some analysts caution that the stock's lofty valuation leaves little room for error, and any deceleration in growth could spook investors.