Revised price targets for Nvidia and Tesla shares

As part of a shift that reflects the latest market trends, Wall Street analysts have adjusted their focus on major players in the technology and automotive sectors. Specifically, Nvidia Corp. (NASDAQ:NVDA) e Tesla Inc. (NASDAQ:TSLA) have undergone significant price target changes by major financial institutions.

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What has happened

Morgan Stanley took a positive stance on Nvidia, raising its price target and growth forecast to more than 15%, the company reported on Wednesday. CNBC. Jefferies instead, it revised its 12-month forecast for Tesla downward, suggesting a nearly 7% drop in the value of the electric car maker’s stock.

Joseph Moore of Morgan Stanley set Nvidia’s price target at $1,000, up from $795, attributing this optimism to strong demand and price strength in the semiconductor industry. Moore pointed to Nvidia’s Data Center segment in particular as a key growth driver, driven by growing demand for AI/ML hardware.

On the contrary, Philippe Houchois, an analyst at Jefferies, maintained a Hold rating on Tesla, but cut the price target to $165 from $185. Houchois cited domestic challenges and declining sales in China as the main reasons for lowering expectations.

Because it is important

The revisions to analysts’ targets come as Nvidia shares come under scrutiny. Nvidia shares fell ahead of the release of inflation data and news that the tech giant plans to manufacture AI chips domestically, which could affect Nvidia’s market share.

More than that, Ark Investment Management Of Cathie Wood sold a large chunk of Nvidia stock, signaling a shift in investor sentiment toward the AI giant.

As for Tesla, Jefferies’ price target revision follows Goldman Sachs’ view that a delay in Tesla’s $25K EV could have a negative impact on the stock. This comes after Tesla reported lower-than-expected production and delivery numbers for the first quarter of 2024, contributing to a bearish outlook.

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