Nvidia’s share price soared on the back of generative artificial intelligence (AI) craze In the meantime, an analysis was raised that it could adversely affect Tesla, which has received great attention in the US stock market. dragged
Barrons, an investment media outlet, reported on this day that the recent AI craze could be a crisis for Tesla.
Nvidia’s share price soared 24.37% from the previous day on the 25th due to the announcement of results that exceeded expectations, increasing its market capitalization to $939 billion (1248.87 trillion won), and is about to join the trillion dollar club. there is a state
Pierre Peragu, a researcher at New Street Research, a US market research firm, predicted in a recent report that Nvidia’s sales would reach $100 billion in 2027, four years from $43 billion in 2023.
■ Possibility of individual investors selling Tesla shares and switching to Nvidia
Barrons said that generative AI, represented by ChatGPT, could affect Tesla’s share price as it emerged as a key theme for investors and electric cars, which were considered theme stocks, were pushed back.
Tesla stock rose 1.1% on the 25th, but in the meantime, the stock price has fallen about 40% from its peak. This is a situation where investor sentiment is under pressure due to intensifying competition for electric vehicles, rising interest rates, and falling car prices, leading to a reduction in profit margins.
In comparison, Nvidia stock has soared about 130% this year. Accordingly, it is analyzed that the possibility of individual investors selling Tesla shares and switching to Nvidia has increased.
■ There are also positive factors
However, there is also an analysis that the AI craze has a positive side for Tesla. The reason is that Tesla is also developing self-driving cars and conducting its own AI business. Elon Musk Tesla CEO (CEO) recently established an AI company ‘X, AI’ and said, “X.AI will be able to develop the AI industry with Microsoft (MS) and Google.”
In addition, he recently revealed in an interview with CNBC, a US economic media outlet, that “Tesla will have a moment similar to ChatGPT with the release of a fully autonomous vehicle.”
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There is also an opinion that this possibility is not yet reflected in Tesla stock because the fully autonomous vehicle technology that Tesla is developing has not been completed.
Wedbush analyst Dan Ives said, “The AI part hasn’t been reflected in Tesla stock yet:” He also predicted that it could add about $40 to Tesla stock over time.
