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HSBC on AI Value Chain: Buy Alphabet, Amazon, Microsoft — SpaceX TP Lifted to $150

Posted on by Eben@CANSLIM Research
Eben@CANSLIM Research's avatarEben@CANSLIM Research

HSBC Global Investment Research says the AI megacycle is only just beginning, with retail adoption of AI the fastest of any general-purpose technology in the past three years and hyperscaler capex set to rise significantly through 2026-28. In a report titled “HSBC’s Key Tech Insights: measuring models,” the bank keeps Buy ratings on Alphabet, Amazon and Microsoft as its preferred ways to monetise AI demand, and lifts its target price on Hold-rated SpaceX to USD150 from USD117.

Key Takeaways

  • HSBC Global Investment Research maintains Buy ratings on Alphabet, Amazon and Microsoft, arguing hyperscalers that can effectively monetise AI demand are its key picks in the long AI value chain.
  • HSBC raised its target price on Hold-rated SpaceX to USD150 from USD117, citing the high value of its compute capacity amid ongoing bottlenecks.
  • HSBC expects hyperscaler budgets to rise significantly in 2026-28, with agentic AI the key driver of acceleration, funded increasingly by operating cash flow, off-balance-sheet financing and bonds.
  • HSBC says ChatGPT and Gemini each have over c1bn users, but company and sovereign adoption takes time as entities assess integration risks — leaving the market at the foothills of the cloud and AI cycle.
  • HSBC expects capacity constraints in power, chips, memory and project availability to continue, with 2027 remaining the story for external chip sales as hyperscalers develop in-house silicon.

What HSBC’s “Measuring Models” Report Says About the AI Trade

In a report titled “HSBC’s Key Tech Insights: measuring models,” HSBC Continental Europe’s Nicolas Cote-Colisson, MD and Head of Global Tech Platforms, together with analysts including Paul Rossington, Charlie Rothbarth, Mohammed Khallouf, Stephen Bersey and Abhishek Shukla, revisits the key Tech themes the bank flagged in its 22 May Global Tech report and argues they remain highly relevant.

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