NVIDIA's Stock Climbs as Blackwell Chip Sparks Investor Frenzy
In the wake of its recent earnings report, NVIDIA (NVDA.US) has captured Wall Street's attention with a five-day streak of climbing stock prices. This rise comes as analysts, especially C.J. Muse from Cantor Fitzgerald, spotlight NVIDIA's potential to significantly outperform expectations in the coming quarters.
Muse attributes the optimistic outlook to NVIDIA's upcoming Blackwell chip, set to make a substantial economic impact in the January quarter. This new line is projected to generate billions in revenue, with Wall Street anticipating about $40 billion. Notably, NVIDIA's CEO, Jensen Huang, has highlighted an extraordinary demand for Blackwell, reinforcing confidence in the company's execution capabilities.
Muse forecasts that NVIDIA's January quarter revenues could reach around $37 billion, while the April quarter might hit $41 billion, both figures extending roughly $10 billion beyond consensus estimates. The Blackwell chip's performance not only aims to surpass financial predictions but also alleviate concerns about potential short-term market fluctuations.
On Tuesday, NVIDIA's stock experienced a notable surge, closing at $132.88, up 4.04%, marking its fifth consecutive day of gains. This places the stock just 2.3% shy of its all-time high closing price noted on June 18. The momentum is further fueled by interest from long-term investors and hedge funds, with Mizuho analyst Jordan Klein citing strong demand exceeding supply for the Blackwell chip.
Adding to the positive sentiment, firms like Foxconn have underscored the chip's demand, enhancing market optimism. As NVIDIA continues to capture investor interest, the company's strategic focus and new chip innovations signal a promising trajectory, reflecting its critical role in the expanding AI hardware domain.