Nvidia’s Stock Rally Expected to Continue for Another 12-18 Months
Nvidia, the market’s most popular chip maker, still has room to climb, with shares set to soar for at least another year, according to Andrew Chang, a technology director at S&P Global Ratings. Recent comments from Jensen Huang, Nvidia’s CEO, have sparked a sharp rally in NVDA shares, signaling strong demand for its chips.
Chang pointed to Huang’s guidance on consumer demand and the company’s next-gen GPU, Blackwell, as drivers of continued upside for Nvidia. In an interview with Schwab Network, Chang emphasized that there is a strong runway for Nvidia for the next 12 months.
Partnerships with companies like Oracle, which recently raised its revenue forecasts after beating first-quarter earnings and doubling planned capital expenditures for the fiscal year, further support the bullish outlook for Nvidia. These positive developments suggest that Nvidia is positioned for growth over the next 12 to 18 months.
However, concerns have been raised about the sustainability of Nvidia’s growth, given its substantial gains over the past five years. Some analysts have warned of potential volatility in demand for Nvidia’s chips, as major customers like Apple and Microsoft may develop their own AI chips and become competitors.
In addition, regulatory scrutiny of AI technology could pose a challenge for Nvidia. The company was recently targeted in an antitrust probe by the Department of Justice, and Chang believes that other countries may follow suit in attempting to regulate the technology in the future.
Despite a brief sell-off following its earnings report in August, Nvidia’s stock rallied recently alongside other tech companies like Oracle and Super Micro Computer. Wall Street analysts have issued an average price target of $153 per share for Nvidia, indicating a 29% upside from current levels.
Overall, the outlook for Nvidia remains positive, with strong demand for its chips and potential for continued growth in the coming months. Investors should keep an eye on market developments and regulatory trends that could impact the company’s performance.