AI Stocks Surge: Nvidia Faces Competition from Tesla and Mobileye

Investors are keenly observing the rise of AI, with Nvidia previously leading the charge. However, rising competition from Tesla and Mobileye, with projected stock upside, could reshape the market landscape, raising concerns about Nvidia's sustained dominance.

Date: 19-09-2024

AI Rating: 5

The report highlights significant developments in the artificial intelligence and electric vehicle sectors, particularly surrounding Nvidia, Tesla, and Mobileye Global. Nvidia has been a central player in the AI GPU market, recording a staggering valuation increase from $360 billion to $3.46 trillion following its stock split. However, the forecast suggests that the company may lose its pricing power and market share due to increasing competition from rivals like Advanced Micro Devices.

For Tesla, the report indicates notable growth potential, with Cathie Wood predicting its stock could soar by 1,050%. This optimistic outlook stems from anticipated profits from autonomous vehicle services, despite challenges regarding the company's current autonomous capabilities.

Mobileye Global, another player in the AI sector, is forecasted to experience a 216% upside according to market analysts. The optimism is based on its innovative ADAS technologies, although market conditions present challenges for its sales guidance.

Key Factors Impacting Stock Prices:

Nvidia: Pricing power erosion due to competition; potential volume loss with clients developing in-house solutions.
Tesla: Proposed 1,050% growth led by robotaxi services; however, lacking current autonomous tech can hinder market confidence.
Mobileye Global: 216% upside driven by advancements in ADAS technology, but facing headwinds from infrastructure and client delays.

Stocks: NVDA TSLA MBLY