Shares of Nvidia (NVDA) recovered from early losses Tuesday as investors positioned ahead of the chipmaker’s closely watched earnings report later this week.
The stock initially fell as much as 2% before trimming losses and trading roughly flat by midday.
Wall Street remains broadly optimistic that Nvidia’s earnings could reignite the stock’s rally and reinforce its position at the centre of the artificial intelligence boom.
Nvidia is scheduled to report fiscal first-quarter results Wednesday after the bell.
Analysts surveyed by LSEG expect the company’s earnings to more than double from a year earlier, while revenue is projected to surge nearly 80%.
HSBC expects stronger guidance
HSBC raised its price target on Nvidia to $325 from $295 while maintaining a Buy rating on the stock.
The new target implies roughly 46% upside from Monday’s close.
HSBC analyst Frank Lee said he expects Nvidia not only to beat first-quarter expectations, but also to issue stronger-than-expected guidance for the current quarter.
Lee pointed to continued momentum from Nvidia’s Blackwell AI platform and the anticipated ramp of its Rubin architecture as key drivers of earnings growth.
He also said Nvidia’s next major stock re-rating could come from opportunities beyond traditional hyperscale cloud providers.
“We believe that the next major re-rating for Nvidia will be driven by a new narrative that can get the market excited about Nvidia’s earnings opportunity beyond selling AI GPUs to traditional hyperscalers,” Lee wrote.
According to HSBC, Nvidia has increasingly expanded relationships outside major cloud providers as it looks to broaden demand for its AI infrastructure ecosystem.
The bank said pricing increases and the company’s GPU roadmap are already largely understood by the market, meaning future upside may increasingly depend on new customer categories and adjacent AI infrastructure opportunities.
Alphabet and Blackstone push TPU expansion
At the same time, developments elsewhere in the AI infrastructure market are highlighting intensifying competition around data centers and AI chips.
Alphabet and Blackstone announced plans to launch a new AI cloud company built around Google’s Tensor Processing Units, or TPUs.
The joint venture will create a US-based company offering data-center capacity and TPU compute services to customers.
Blackstone said it plans to commit an initial $5 billion in equity capital and expects the first 500 megawatts of capacity to come online in 2027 before scaling further over time.
The move represents a direct challenge to emerging “neocloud” providers such as CoreWeave and Nebius, both of which largely rely on Nvidia chips.
Shares of CoreWeave and Nebius both fell in early trading following the announcement.
The partnership also signals Alphabet’s growing ambitions to build a broader AI ecosystem centered around its in-house TPU chips rather than relying entirely on third-party GPU suppliers.
Nvidia still at the center of the AI boom
Despite growing competition from custom chips and alternative AI infrastructure providers, Nvidia remains the dominant supplier of advanced AI accelerators globally.
The company continues to benefit from massive spending commitments from hyperscalers, governments, enterprises, and startups racing to build AI capacity.
Investor focus this week will center on Nvidia’s guidance around AI demand, production capacity, margins, Blackwell deployments, and international sales opportunities — particularly in China.
Wall Street largely continues to view Nvidia as the clearest large-scale beneficiary of the ongoing AI infrastructure expansion cycle, even as rivals attempt to build competing ecosystems around proprietary chips and cloud platforms.
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