Wall Street Analysts Adjust Targets For Nvidia And Tesla Amid Market Movements

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. (NASDAQ:NVDA) and Tesla Inc. (NASDAQ: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.

See Also: Tesla Decision To Pause $25,000 Vehicle Could Be ‘Thesis-Changing’: Analyst Looks For Clarity On Robotaxi

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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