HSBC Global Research has released a report on Nvidia (NVDA, Financial), forecasting sales of $40 billion for the fourth quarter of fiscal year 2025, surpassing both the management's guidance and market expectations of $37.5 billion and $38.2 billion, respectively.
The research predicts that sales for the first and second quarters of fiscal year 2026 will reach $42.2 billion and $55.4 billion, exceeding market estimates of $42 billion and $46.2 billion. Despite ongoing supply chain issues, Nvidia's performance in the first half of the fiscal year is expected to meet market expectations.
Investors are increasingly focused on the growth momentum of Blackwell's revenue rather than overall sales, anticipating that Blackwell will perform as expected.
HSBC Global Research has revised Nvidia's fiscal year 2026 earnings per share forecast down by 10%, reflecting lowered expectations for NVL server racks. Consequently, the target price for Nvidia has been reduced from $185 to $175, although the "buy" rating is maintained.
