Nvidia's stock rally has another 12-18 months left to go, according to S&P Global's Andrew Chang.
The stock has at least another year of "strong runaway" amid big demand for its chips, Chang said.
He aired concerns over AI investment pulling back in future quarters, which could impact shares.
Nvidia stock has a lot more room to climb — and shares of the market's most popular chip maker are bound to soar for at least another year, according to Andrew Chang, a technology director at S&P Global Ratings.
The banking veteran pointed to recent comments from Jensen Huang, who sparked a sharp rally in NVDA shares this week after speaking at a Goldman Sachs conference in San Francisco. The Nvidia CEO issued more guidance on consumer demand and, in particular, demand for Blackwell, the company's next-gen GPU.
His comments bolster predictions of continued upside for Nvidia, Chang said in an interview with Schwab Network on Friday.
"It just confirms our view that we have strong runway for at least the next 12 months," Chang said.
Nvidia's partners are also showing signs of strong chip demand. Oracle, which has an ongoing partnership with Nvidia, bumped up its revenue forecasts after beating earnings for the first quarter. The software firm also doubled its planned capital expenditures for the fiscal year — which are all bullish signs for Nvidia.
"All of these are great data points that, at least for the next 12 to 18 months, things look great," Chang said of the Jensen Huang-led firm.
Still, he acknowledged some concerns investors have been airing. Some have floated worries that Nvidia's growth is unsustainable, given the stock's monster 2,514% gain over the last five years.
Some analysts have warned demand for Nvidia's chips may not hold strong in the coming years, as the firm's largest customers could eventually turn into competitors. Apple and Microsoft, two huge customers of Nvidia's GPUs, are reportedly working on their own AI chips.
"Ultimately, if Oracle, if Microsoft, if Amazon don't see the ROI that they expect, they're going to cut orders. So hyperscale, demand volatility is something that really concerns us," Chang said. "But, you know, these data center players have been known to order a bunch and then pause for several quarters. That's what we're looking out for."
Investors will also need to be on the lookout for tighter regulation of AI. Nvidia was recently targeted by the Department of Justice in a fresh antitrust probe, Bloomberg reported, and it's just a "matter of time" before other countries follow suit and try to regulate the technology, Chang said.
Nvidia stock sold off in the weeks following its earnings report at the end of August, but the stock staged a fresh rally this week alongside other tech stalwarts including Oracle and Super Micro Computer.
Wall Street remains generally bullish on Nvidia. According to Nasdaq data, analysts have issued an average price target of $153 a share, implying a 29% upside from current levels.
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