Nvidia (NVDA.US) rose for a fifth consecutive day as analysts said the company had the most "upside potential"

After Nvidia (NVDA.US) released its last earnings report, Wall Street speculated that the company's upside potential may not be as significant as in the previous quarters.

However, Zhitong Finance APP learned that C.J. Muse, an analyst at Cantor Fitzgerald, believes Nvidia is the most likely company in the chip industry to significantly exceed expectations in the future. He and his team believe Nvidia has the most "upside potential" among all the companies they cover.

The key factor driving Nvidia's potential upside is the upcoming Blackwell chip, which is expected to make a significant contribution in the January quarter. Nvidia expects this line to bring in "tens of billions" of dollars in revenue in the January quarter, while Wall Street's forecast is about $4 billion.

According to Nvidia CEO Jensen Huang, the market demand for Blackwell is "crazy," combined with Nvidia's usual strong execution, Muse believes the company is likely to exceed expectations. He expects Nvidia's revenue in the January quarter to be about $37 billion, and $41 billion in the April quarter, both about $1 billion higher than the market consensus.

Muse noted that the performance of Blackwell chips "will drive the upside and alleviate concerns about potential short-term volatility," and called it "the strongest and most important product cycle" for the company so far. He added that in this context, Nvidia is "undoubtedly our most preferred company."

Nvidia's stock price surged again on Tuesday, closing up 4.04% at $132.884, marking its fifth consecutive day of gains. Currently, Nvidia's stock price is only 2.3% lower than its all-time high closing price of $135.58 on June 18.

Analyst Jordan Klein of Mizuho said long investors and hedge fund investors are increasingly interested in Nvidia's stock trajectory, especially in the context of 2025. Blackwell chips could bring more significant upside potential as demand far outstrips supply.

Klein also noted that Foxconn Industrial Internet, a contract manufacturer for AI servers, recently mentioned strong demand for Blackwell chips in interviews with the media, further fueling market optimism.