NVIDIA has been rising for five consecutive days. Will the uptrend continue?

After NVIDIA (NVDA) released its latest earnings report, Wall Street speculated that the company's performance this time might not significantly exceed expectations like in previous quarters.

However, I believe that NVIDIA has the most potential to exceed expectations in the chip industry going forward.

One key factor driving this potential is the upcoming Blackwell chip, which is expected to make a significant contribution in the January quarter. NVIDIA anticipates that this product line will generate "billions of dollars" in revenue during the January fiscal quarter, while Wall Street's forecast stands at around $4 billion.

NVIDIA's CEO, Jensen Huang, has stated that the demand for Blackwell is "crazy." Coupled with NVIDIA's strong track record of execution, I believe the company is poised to outperform expectations. I expect NVIDIA's January fiscal quarter revenue to reach around $37 billion, and its April fiscal quarter revenue to hit around $41 billion, both exceeding consensus estimates by about $1 billion.

In my view, the performance of the Blackwell chip will drive earnings beyond expectations and alleviate concerns about potential short-term volatility. Moreover, this could be the company's "strongest and most important product cycle" to date.

On Tuesday, NVIDIA's stock surged again, rising 4.04% to close at $132.884, marking its fifth consecutive day of gains. Currently, NVIDIA's stock price is only 2.3% below its all-time high closing price of $135.58, set on June 18.

I believe that long-term investors and hedge fund managers are increasingly interested in NVIDIA's stock trajectory, especially looking toward early 2025. The Blackwell chip may deliver even bigger surprises than expected, with demand far outstripping supply.

Additionally, Foxconn, a contract manufacturer for AI servers, recently mentioned in a media interview that demand for the Blackwell chip is extremely strong, further fueling market optimism.