Why Tesla (TSLA) Is Scaling Back In-House Chips and Teaming Up With Nvidia

Published 2 months ago Neutral
Why Tesla (TSLA) Is Scaling Back In-House Chips and Teaming Up With Nvidia
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Tesla, Inc. (NASDAQ:TSLA) is one the AI Stocks Investors Are Watching Closely. On August 11, Morgan Stanley maintained the stock as Overweight and also reiterated it as its top pick.

The firm highlighted reports that Tesla is scaling back its in-house custom silicon computing ambitions. Instead, it is focusing more on partnerships with suppliers like Nvidia to enhance its inference capabilities.Why Tesla (TSLA) Is Scaling Back In-House Chips and Teaming Up With Nvidia

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Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $329 implies a 3.47% upside; however, the Street-high target of $500 implies an upside of 46.7%.

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks Investors Are Watching Closely and 10 AI Stocks Analysts Are Watching Closely.

Disclosure: None.

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