On Monday, HSBC analyst Frank Lee adjusted the price target on NVIDIA (NASDAQ:) shares, increasing it to $835 from the previous target of $800. The firm sustained its Buy rating for the stock. The adjustment reflects HSBC’s long-term confidence in NVIDIA’s leading position in artificial intelligence (AI), anticipating that the company’s competitive edge will continue to keep it well ahead of its rivals.

HSBC’s stance is informed by NVIDIA’s performance, particularly noting the momentum of its earnings exceeding expectations and subsequent adjustments throughout 2023, which the analyst suggests may reach its zenith starting this quarter. Despite this, the firm’s outlook remains optimistic due to NVIDIA’s substantial year-to-date share price increase, which stands at a 46% gain, outpacing the ‘s 8% rise over the same period.

The analyst pointed out that market expectations have substantially increased as consensus earnings are now nearing the forecasts previously made by HSBC. With the market having already adjusted to NVIDIA’s recent sales and earnings growth, the firm anticipates there may be a narrower margin for earnings to surpass expectations in 2024 compared to the previous year’s surprise growth.

Nevertheless, HSBC continues to endorse a bullish perspective on NVIDIA’s stock, suggesting that new Total Addressable Markets (TAMs) could drive further positive reassessment of the company’s value. The firm’s maintained Buy rating indicates a continued expectation of NVIDIA’s strong performance in the market, underpinned by its strategic dominance in the AI sector.

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