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HSBC Maintains Cautious Stance on Nvidia Despite AI Boom Ahead of Earnings
HSBC Maintains Cautious Stance on Nvidia Despite AI Boom Ahead of Earnings
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Nvidia's upcoming Q2 earnings report on August 27 has drawn widespread Wall Street optimism, fueled by surging AI demand and resilient cloud spending. Yet HSBC analyst Frank Lee strikes a contrarian note, maintaining a Hold rating despite raising his price target to $200 from $125.
China looms large in HSBC's skepticism. While the resumption of H20 chip licensing provides near-term relief, structural challenges persist. U.S. revenue-sharing requirements compress margins, while Beijing's push for semiconductor self-sufficiency threatens Nvidia's long-term position in the market. "The street may be underestimating China's drag on growth," Lee warns, even as he forecasts Q2 revenue of $46.7 billion - slightly ahead of consensus.
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