Notable analyst calls this week: Nvidia, T-Mobile and WMG among top picks

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The S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) closed in the green on Friday, while Nasdaq (COMP:IND [https://seekingalpha.com/symbol/COMP:IND]) and Dow (DJI [https://seekingalpha.com/symbol/DJI]) fell 0.6% and 0.3%, respectively. Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:

NVIDIA, AMD RECEIVE BULLISH VIEWS FROM HSBC

HSBC upgraded [https://seekingalpha.com/news/4504265-nvidia-gets-rating-upgrade-while-amd-sees-bullish-views-at-hsbc] Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) to Buy from Hold noting that it expects the AI graphics processing unit total addressable market to keep increasing beyond hyperscalers, leading to continuous earnings growth.

Analysts led by Frank Lee said they upgraded the stock on the back of increasing fiscal 2027 estimate for GPU TAM relative to their previous expectations, leading to an upward revision in their fiscal 2027 data center revenue estimate to $351B, which remains 36% above consensus forecast of $258B.

The brokerage increased PT on Nvidia's stock to $320 from $200.

HSBC also increased PT on AMD's (NASDAQ:AMD [https://seekingalpha.com/symbol/AMD]) stock to $310 from $185 while maintaining its Buy rating on the shares. Lee and his team said AMD's OpenAI deal implies massive AI revenue upside potential, which is still underestimated by consensus. The analysts believe this deal gives enhanced visibility into AMD’s AI GPU revenue opportunity till 2030.

T-MOBILE UPGRADED ON SUBSCRIBER GROWTH EXPECTATION

RBC upgraded [https://seekingalpha.com/news/4503939-rbc-capital-markets-turns-bullish-on-t-mobile-us-over-solid-operating-trends] T-Mobile US (NASDAQ:TMUS [https://seekingalpha.com/symbol/TMUS]) to Outperform from Sector perform, on expectations the company would see strong subscriber growth in the near term compared to wireless peers and benefit from the US Mobile acquisition in the medium term.

The research firm noted that T-Mobile continued its strong customer acquisition activity in the wireless market. TMUS price target was unchanged at $270.

"While we expect subscriber growth in the industry to slow down sequentially, T-Mobile is well-positioned in a high-churn environment," RBC said.

HP UPGRADED ON VALUATION, BUSINESS MOMENTUM

HSBC upgraded [https://seekingalpha.com/news/4503881-hp-gets-rating-upgrade-at-hsbc-on-valuation-business-momentum] HP (NYSE:HPQ [https://seekingalpha.com/symbol/HPQ]) to Buy from Hold, citing valuation and business momentum.

Analyst Abhishek Shukla said that the market indicates that PC and printer volumes for HP may be better than they had previously expected. The firm also raised PT on the stock to 30 from 28.10.

The brokerage said it now expects HP’s PC volume growth at 5.1% and 6.9% in fiscal 2025 and fiscal 2026, respectively, and added that tariff concerns are overdone.

"HP no longer makes significant imports from China to the US, suggesting limited downside risks from any US-China tariff tensions," said Shukla and his team.

WARNER MUSIC GROUP UPGRADED ON EXPECTATION OF GROWTH REACCELERATION

Wells Fargo upgraded Warner Music Group (NASDAQ:WMG [https://seekingalpha.com/symbol/WMG]) to Overweight from Equal weight and said the company is poised for growth to re-accelerate and will benefit from strong underlying secular trends.

The research firm attributes the company's current growth to the successful turnaround at Atlantic Records and Warner Records posting all-time market share highs. They believe the underlying improvements of WMG's frontline labels are sustainable.

WMG has a price target of $39, hiked from $34.

Barclays downgraded [https://seekingalpha.com/news/4503898-cyberark-downgraded-to-equal-weight-ahead-of-its-acquisition-by-palo-alto-barclays] CYBERARK (NASDAQ:CYBR [https://seekingalpha.com/symbol/CYBR]) from Overweight to Equal Weight ahead of its pending acquisition by Palo Alto Networks (NASDAQ:PANW [https://seekingalpha.com/symbol/PANW]). Meanwhile, PALO ALTO NETWORKS was upgraded [https://seekingalpha.com/news/4503646-palo-alto-networks-gains-after-btig-upgrades-to-buy] by BTIG to Buy, citing “greater confidence” in the cybersecurity company’s ability to achieve growth targets calling for 14% total revenue growth.

MICRON TECHNOLOGY (NASDAQ:MU [https://seekingalpha.com/symbol/MU]) was in focus after Citi raised [https://seekingalpha.com/news/4504787-micron-rises-as-citi-believes-dram-could-see-unprecedented-demand-from-ai] its price target to $240 from $200 on Micron and reiterated Buy rating on the memory maker, citing the belief that dynamic random access memory could see “unprecedented” demand from artificial intelligence.

Citi also raised PT [https://seekingalpha.com/news/4503930-broadcom-sees-bullish-views-at-citi-after-openai-deal] on BROADCOM (NASDAQ:AVGO [https://seekingalpha.com/symbol/AVGO]) to $415 from $350 after the chipmaker and Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT])-backed OpenAI announced [https://seekingalpha.com/news/4503609-broadcom-surges-after-openai-deal-for-10-gigawatts-of-custom-ai-accelerators#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] a collaboration for 10 gigawatts of custom AI accelerators. Analysts led by Christopher Danely said that while Broadcom did not provide an estimate, they believe this deal could be worth $100 billion and $8.00 in EPS over the next few years.

ALBEMARLE (NYSE:ALB [https://seekingalpha.com/symbol/ALB]) received a downgrade [https://seekingalpha.com/news/4504043-albemarle-cut-to-neutral-at-bofa-as-headline-driven-momentum-limits-upside] to Neutral from Buy with a $100 price target at BofA, which said shares are fairly valued following recent strength on the back of a U.S. government investment in Thacker Pass and export restriction headlines on Chinese lithium batteries, news that investors have "misread" as positive for ALB.

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