Since the end of August this year, due to concerns about the demand and regulatory prospects facing Nvidia, the stock price of Nvidia has once fallen. However, this week, the stock rebounded along with other tech giants such as Oracle and AMD.

Andrew Chang, Global Head of Technology Ratings at S&P Global, said in an interview on Friday US time, $NVIDIA (NVDA.US)$ that the stock price has a lot of room for further upside, and it is expected to soar for at least another year.

Nvidia demand will continue to be strong

Andrew mentioned Huang Renxun's recent comments. Recently, Huang Renxun made a "Versailles"-style statement at the Goldman Sachs conference in San Francisco, stating that the demand for Nvidia's latest generation Blackwell chip is strong, to the point where it has irritated some customers and strained relationships.

"The demand is too high, everyone wants to be the first to get it, and everyone wants to place the most orders. Our customers are quite excited, which is understandable. It is indeed tense, but we are trying our best."

This speech has triggered a significant increase in the stock price of Nvidia, even leading to a rebound in the technology sector of US stocks.

Andrew Zhang believes that Huang Renxun's remarks support the continued upward trend of Nvidia: "This confirms our view that for at least the next 12 months, (Nvidia's stock price) will continue to show strong momentum."

In addition, Nvidia's partners are also showing signs of strong chip demand. Software giant Oracle, which has a continuous partnership with Nvidia, raised its revenue expectations after exceeding expectations in the first quarter. Oracle also doubled its planned capital expenditures for this fiscal year, all of which are favorable signs for Nvidia.

"All of these are very good data points, at least things are looking good in the next 12 to 18 months," Andrew said.

There are still concerns lingering.

However, Andrew acknowledges that investors have been expressing some concerns. Some are worried that Nvidia's growth is unsustainable, especially considering the stock has already surged 2514% in the past five years.

Some analysts warn that the demand for Nvidia chips may not remain strong in the coming years, as the company's biggest customers like Apple and Microsoft are reportedly developing their own AI chips.

"Ultimately, if Oracle, Microsoft, and Amazon don't see the ROI they expect, they will reduce their orders. So, the real concern for us is the massive fluctuations in demand... but, you know, these players in the data center space have already seen the pattern of placing a big order and then pausing for a few quarters. That's what we're watching."

In addition to demand, investors also need to pay attention to tightening government regulations on AI. According to Bloomberg, Nvidia has recently become the target of a new round of antitrust investigations by the US Department of Justice, and other countries may follow the US in implementing similar regulations, it's just a matter of time.

Nevertheless, Wall Street is still generally bullish on Nvidia. According to Nasdaq, the average target price given by analysts is $153 per share, a 29% increase compared to the current level.

Editor/Somer