In a dynamic shift reflecting the latest market trends, Wall Street analysts have revised their outlooks for key players in the tech and automotive sectors. Notably, Nvidia Corp. NVDA and Tesla Inc. TSLA have seen significant changes in their price targets from top financial institutions.
What Happened: Morgan Stanley has taken a bullish position on Nvidia, adjusting its price target upwards with an anticipation of over 15% growth, CNBC reported on Wednesday. In contrast, Jefferies has revised its 12-month forecast for Tesla downward, suggesting a potential decline of nearly 7% in the electric vehicle manufacturer’s share value.
Morgan Stanley’s Joseph Moore has set Nvidia’s price target at $1,000, up from $795, attributing this optimism to strong demand and pricing power in the semiconductor space. Moore specifically pointed to Nvidia’s Data Center segment as a primary growth catalyst, driven by increasing needs for AI/ML hardware.
Conversely, Jefferies analyst Philippe Houchois maintained a hold rating on Tesla but reduced the price target to $165 from $185. Houchois cited internal challenges and softening sales in China as key factors for the tempered expectations.
Why It Matters: These revised analyst targets come at a time when Nvidia’s stock has been under scrutiny. Nvidia shares dipped ahead of inflation data release and news of a major tech company planning to produce AI chips in-house, potentially impacting Nvidia’s market share.
Additionally, Cathie Wood’s Ark Investment Management sold a substantial portion of Nvidia shares, signaling a shift in investor sentiment towards the AI giant.
For Tesla, the price target adjustment by Jefferies follows Goldman Sachs’ view that delaying Tesla’s $25K EV would negatively impact the stock. This comes after Tesla reported lower-than-expected production and delivery numbers for the first quarter of 2024, contributing to the bearish outlook.
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