Latest news with #Jewsikow
Business Insider
3 days ago
- Automotive
- Business Insider
Will Tesla Stock Plunge Nearly 50%? Here's What Guggenheim Expects
Tesla (NASDAQ:TSLA) bulls are pinning hopes on the company's Robotaxi service to reignite growth at the EV maker, and on that front, CEO Elon Musk had some good news for investors recently. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. On the weekend, Musk announced on X that Tesla's Austin Robotaxi service will open to the public next month. That, says Guggenheim analyst Ronald Jewsikow, is 'quicker than we were expecting.' Although the exact structure of the public Robotaxi network remains uncertain – likely requiring a significant increase in vehicle numbers – it represents 'another show of confidence' in the service. So far, Tesla has reported only one safety-related incident in Austin, classified as a 'safety concern' rather than an accident, which Jewsikow believes occurred on the network's first day of operation. The public launch of the Austin Robotaxi experience represents a 'key step' in engaging a broader – and potentially more discerning – group of consumers. That said, Jewsikow thinks some skepticism among the fanbase might be warranted, although it's unlikely to materialize. 'While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now,' the analyst said on the matter. And as if to reinforce confidence in Tesla's autonomous ambitions, Musk also revealed that the next-generation FSD model – version 14, boasting 10X more parameters – is expected to debut in roughly six weeks. Initially, it will be rolled out to the early access FSD community, but its progress within Tesla's employee fleet and the Robotaxi network is encouraging. For consumers, the update should reduce how often the FSD system 'nags,' and Musk hinted at numerous additional improvements beyond the parameter boost, though he hasn't yet shared specifics. For the uninitiated, '10X parameters' refers to the number of variables the FSD model uses to learn from data. These variables adjust to make predictions more accurate. In Tesla's neural network, parameters act as influences on the neurons. For the Robotaxi system and FSD overall, a higher number of parameters allows the model to learn more complex patterns, behaviors, and tasks, and improves training. 'Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today,' Jewsikow said, 'the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.' Still, these updates haven't swayed Jewsikow's overall bearish stance. His rating on TSLA shares remains a Sell, and his $175 price target implies a one-year drop of nearly 50%. (To watch Jewsikow's track record, click here) The Street's average price target is a more forgiving $307.23, although that figure suggests shares are overvalued by 9%. Based on a mix of 15 Holds, 14 Buys, and 8 Sells, TSLA stock claims a Hold (i.e., Neutral) consensus rating. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Globe and Mail
14-03-2025
- Business
- Globe and Mail
TSLA, AAPL, or NVDA: Which Magnificent 7 Stock Scores Wall Street's 'Strong Buy' Rating?
The Magnificent 7 stocks: Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA), are prominent tech companies that are known for their market dominance, innovation, and influence on the NASDAQ (NDAQ) and S&P 500 (SPX) indices. However, except for META (as of writing), all other magnificent stocks are in the red year to date amid tariff wars, macro challenges, and certain company-specific risks. Using TipRanks' Stock Comparison Tool, we will compare three Magnificent 7 stocks to pick the one that scores Wall Street's 'Strong Buy' consensus rating with an attractive upside potential. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Tesla (NASDAQ:TSLA) Tesla stock is down almost 39% so far this year, as investors are disappointed with the electric vehicle (EV) maker's lackluster sales, declining market share in key markets amid intense competition, lack of innovation, and the distraction caused by CEO Elon Musk's political ambitions. While Tesla Bulls see huge opportunities for Tesla's Cybercab robotaxis and Optimus humanoid robot, bears are concerned about the growing backlash that CEO Elon Musk is facing for his political moves, diminishing brand value, and the impact of consumer protests at Tesla stores globally. What Is the Price Target for Tesla Stock? On March 12, Guggenheim analyst Ronald Jewsikow reduced the price target for Tesla stock to $170 from $175 and maintained a Sell rating. The analyst updated his TSLA delivery and margin forecasts to reflect quarter-to-date data. He now expects Q1 2025 deliveries of 358,000, down from the previous estimate of 405,000 and well below the consensus estimate of 420,000. Jewsikow stated that the range of outcomes for March remains difficult to forecast as much of the upside/downside depends on the revamped Model Y's production and willingness to discount older generation Model Y EVs. The analyst added that early indications for the refreshed Model Y demand are slightly negative. Overall, Jewsikow thinks that headlines are likely to get worse before they get better, with an unfavorable Q1 delivery print, Q1 gross margin downside, underwhelming new model launches, and a June Robotaxi launch that could disappoint in terms of scope, particularly as Google's Waymo ramps. Overall, Wall Street has a Hold consensus rating on Tesla stock based on 12 Buys, 13 Holds, and 12 Sell recommendations. The average TSLA stock price target of $331.07 implies 37.6% upside potential. See more TSLA analyst ratings Apple (NASDAQ:AAPL) Apple has been under pressure due to weakness in the sales of iPhone, the company's largest product category based on sales. The impact of macro pressures on consumers' discretionary spending and intense rivalry in key markets like China are weighing on iPhone sales. On the positive side, the company's Services business continues to grow at a strong rate. Apple's Services business carries a higher margin than the Products business and helps in bolstering the company's ecosystem by deepening customer engagement. Looking ahead, Apple might continue to be under pressure over the near term due to the impact of tariffs and a delay in the rollout of advanced Siri features integrated into Apple Intelligence, which was expected to drive iPhone upgrades in Fiscal 2026. Is Apple Stock a Buy, Hold, or Sell? Recently, Goldman Sachs analyst Michael Ng reiterated a Buy rating on Apple stock with a price target of $294. Commenting on Apple's announcement of several new Mac and iPad products, the top-rated analyst said that the channel fill of the new product launches should support the company's ability to achieve its Q2 FY25 revenue growth outlook of low-to-mid-single digits, despite the lower-than-expected starting pricing for the MacBook Air. Ng expects the MacBook Air, which is Apple's best-selling laptop, to benefit from the industry-wide PC refresh cycle and drive share gains for Mac due to its aggressive pricing ($100 less expensive than prior MacBook Air launch price), Apple Intelligence AI features with the M4 processor, and further integration with the Apple ecosystem. Overall, Wall Street has a Moderate Buy consensus rating on Apple stock based on 18 Buys, 11 Holds, and four Sell recommendations. The average AAPL stock price target of $250.20 implies 19.3% upside potential. See more AAPL analyst ratings Nvidia (NASDAQ:NVDA) Semiconductor giant Nvidia is seen as one of the major beneficiaries of the ongoing AI wave. The significant demand for the company's advanced GPUs (graphic processing units) that are required to build AI models has boosted its revenue and earnings, driving a stellar rally in NVDA stock last year. However, Nvidia stock is down about 14% so far in 2025 due to tariff wars, growing competition from custom AI chips and cheaper tech from China, chip export restrictions, and concerns over a potential slowdown in AI spending due to macro pressures. Nonetheless, the demand for Nvidia's advanced GPUs remains robust, with the Blackwell platform expected to boost the top line further. What Is the Prediction for NVDA Stock? Earlier this week, TD Cowen analyst Joshua Buchalter reiterated a Buy rating on Nvidia stock with a price target of $175. After hosting NVIDIA's VP of Healthcare Kimberly Powell at TD Cowen's 45th Annual Health Care Conference, the analyst noted the significant opportunity to leverage agentic and physical AI across three healthcare areas: digital devices and imaging, drug discovery, and digital health. Buchalter thinks that healthcare is one of the largest and most important future AI opportunities for Nvidia Overall, Buchalter believes that Nvidia is the 'Accelerated Computing Leader.' He expects the company's superior technology, impressive innovation, and extensive growth-oriented investments to fuel significant, long-term, above-peer growth across the company's vast data center segment, with a widening set of key verticals such as healthcare. With 39 Buys versus three Hold recommendations, Wall Street has a Strong Buy consensus rating on Nvidia stock. The average NVDA stock price target of $177.41 implies 53.5% upside potential from current levels. See more NVDA analyst ratings Conclusion Magnificent 7 stocks are currently under pressure due to tariff woes, macro challenges, and certain company-specific risks. Among the three Magnificent 7 stocks discussed here, Wall Street is highly bullish on Nvidia stock and cautiously optimistic on Apple while being sidelined on Tesla amid several challenges. Analysts predict higher upside potential in Nvidia stock than in the other two Magnificent 7 stocks and see the pullback in the stock as an attractive opportunity to build a position and benefit from the massive AI tailwinds that the semiconductor giant is witnessing. Disclosure
