Shortage of AI Chips Reaches 12-to-1 Ratio: Analysts Predict New Rally for Nvidia Shares

According to Wedbush Securities analyst Dan Ives, demand for Nvidia accelerators currently exceeds supply by a factor of 12, signaling sustained high growth potential for the company's stock price. Ives argues that AI development is still in its early stages and that demand for compute power will keep increasing. Meanwhile, major tech firms are not cutting their AI infrastructure spending; Alphabet raised its capital expenditure forecast for this year to $195–205 billion, Amazon increased expected spending to $220 billion, partly due to rising memory costs, and Microsoft confirmed large-scale investments and expects to achieve positive free cash flow in fiscal 2027. As reported by The Motley Fool, Nvidia's financial results continue to climb, with first-quarter fiscal 2027 revenue (quarter ending April 26, 2026) up 85% year-over-year and net profit more than tripling. Despite this, Nvidia shares have gained only about 4% since the start of the year, which does not reflect current business performance. Ives believes the ongoing shortage of accelerators will allow Nvidia to maintain high growth, and additional demand may come from new areas such as humanoid robots and autonomous vehicles using Physical AI technologies. If demand remains significantly above supply, it could support further growth in the coming years.