Moments after Morgan Stanley predicted that Tesla’s Dojo supercomputer would boost the electric vehicle maker’s market value by over $600 billion by accelerating its entry into robotaxis and software services, shares of Tesla appreciated by 6%.
The world’s most valuable manufacturer, Tesla, began producing Dojo in July and expects to spend over $1 billion on it over the course of the following year. Dojo will train AI models for self-driving cars.
Dojo potentially opened up new addressable markets that “extend well beyond selling vehicles at a fixed price,” according to a note published on Sunday by Morgan Stanley analysts led by Adam Jonas.
“If Dojo can help make cars ‘see’ and ‘react,’ what other markets could open up? Think of any device at the edge with a camera that makes real-time decisions based on its visual field.”
The Wall Street brokerage changed Ferrari’s U.S.-listed shares to Tesla’s as the “top pick” and upgraded Tesla’s stock from “equal-weight” to “overweight”.
According to Simba Daily, Morgan Stanley increased its 12- to 18-month price target on Tesla’s shares by 60% to $400, making it the highest among Wall Street brokerages. At that price, according to Morgan Stanley’s estimates, the EV manufacturer would have a market value of nearly $1.39 trillion.
Based on the stock’s finish of $248.5 on Friday, that is almost 76% greater than Tesla’s market worth of about $789 billion. On Monday, the stock increased by almost 5.7% to $262.70.
Jonas anticipates Dojo to be the program and service that adds the most value.
Morgan Stanley increased its revenue forecast for Tesla’s network services division from $157 billion to $335 billion in 2040.
By 2040, nearly doubling from 2030, Jonas projects the segment to provide more than 60% of Tesla’s core earnings.
“This increase is largely driven by the emerging opportunity we see in third-party fleet licensing, increased ARPU (average monthly revenue per user),” the analyst said.
According to a stat on I Get Talk, Tesla’s 12-month forward price-to-earnings ratio of 57.9 is far higher than those of venerable automakers Ford (F.N) at 6.31 and General Motors (GM.N) at 4.56.
Meanwhile, on I Get Talk’s report on the top 10 companies to watch out for in the stock market, tech companies such as Nvidia dominate the list.
Nvidia Corp (NVDA.O) launched its new flagship chips for video gamers. The company said it partnered with Taiwan Semiconductor Manufacturing Co (2330.TW) to produce the processors which will use artificial intelligence (AI) to improve graphics
Nvidia has attracted a massive attention in recent times with its thriving data center business, which sells chips used in artificial intelligence tasks like natural language processing. Although the company’s roots are in graphics chips, those products still accounted for 59% of its most recent fiscal year’s $26.9 billion in revenue.
Nvidia Chief Executive Jensen Huang on Tuesday unveiled the firm’s newest “Ada Lovelace” series of graphics chips, named for the 19th-century British mathematician regarded as an early pioneer in computer science. The keynote speech was streamed online.
The most expensive version of the chip, the GeForce RTX 4090, will cost $1,599 and go on sale on October 12. Two RTX 4080 models with lower starting prices will be available in November for $899 and $1,199, respectively.
Although Nvidia designs its chips, partners manufacture them. Huang revealed that the “4N” chip manufacturing technology used by Taiwan Semiconductor Manufacturing (TSMC) will be used to produce the chips, a departure from Samsung Electronics Co Ltd., which produced Nvidia’s previous generation of flagship gaming chips.
The recent U.S. ban on selling Nvidia’s top data center AI chips to China will not apply to the Lovelace chips, according to Matt Wuebbling, vice president of global GeForce marketing at Nvidia, who made the announcement during a press briefing.
Wuebbling also said that due to recent modifications in the way Ethereum is tracked, the chips will not come equipped with a so-called hash-rate limiter, a feature Nvidia incorporated in its previous generation of chips to restrict their use in cryptocurrency mining.