• Nvidia stock has lots more room to run, in response to Dan Niles.

• The Niles Investment founder compared Nvidia to Cisco prior to the height of the dot-com bubble.

• Nvidia shares could double in the following couple of years, he predicted.

Nvidia stock has slid for the reason that company reported earnings last month, but its rally is nowhere near over.

That is in response to Dan Niles, founder and portfolio manager of Niles Investment Management, who’s still bullish on the factitious intelligence titan for the foreseeable future.

That is because firms are still willing to shell out on AI spending — and Nvidia looks prefer it’s following the identical pattern as other firms that soared during past tech bubbles, he told CNBC in a recent interview.

“I still imagine you’ve numerous room for spend,” Niles said of AI. “What I’m saying is that within the short term, I believe you’ve a digestion phase that you just just should undergo. I firmly imagine that in the following several years, Nvidia’s revenues will again have the opportunity to double from current levels, and the stock will have the opportunity to double as well.”

Cisco, which dominated the web bubble within the late nineties, saw its revenue peak at around 15 times what it posted in 1994, while its stock had soared nearly 4,000% from that 12 months through 2000. It plunged through the dot-com crash, with shares plummeting around 85% peak-to-trough.

Nvidia shares, by comparison, have risen around 1,500% during the last six years. Niles suggested that this might mean the chipmaker has more upside ahead before a fallout.

“I’ve lived through ’01, ’02. This stuff can go on longer than you have ever imagined possible,” he added.

Within the short term, Niles’ forecast is at the high end amongst analysts watching Nvidia. But most of Wall Street stays optimistic concerning the chipmaker within the quarters ahead, especially as the corporate looks poised to roll out its next-gen Blackwell AI chip.

Analysts have an average price goal of $153.24 a share, in response to Nasdaq data, implying one other 44% upside from its current levels.

The chipmaker has hit a rough stretch in recent weeks, with shares dropping 27% from their peak earlier this summer.

Investors have been dismayed by the delay of the Blackwell chip, but more importantly, many are also questioning whether the entire billions of AI spending by Nvidia’s customers will find yourself generating a return anytime soon.

Read the unique article on Business Insider