Tesla vs. Nvidia: Certain Wall Street Analysts Say Buy 1 Stock But Are Split on the Other

Core Viewpoint - The tech-heavy Nasdaq Composite has declined over 8% this year, prompting investors to seek opportunities, particularly in popular stocks like Nvidia and Tesla, which have seen significant price drops [1][2]. Group 1: Tesla - Tesla's stock has dropped 38% this year, influenced by broader market sell-offs and concerns regarding first-quarter deliveries [2][3]. - The stock is viewed as a battleground, with analysts divided on its valuation and future prospects; it trades at approximately 86 times forward earnings, with expected earnings growth of 17% [4]. - Among 36 analysts, 12 recommend buying Tesla, 13 suggest holding, and 11 advise selling, with an average price target indicating a potential upside of 41% [4]. - Concerns have been raised about CEO Elon Musk's political involvement and its potential negative impact on Tesla's sales [5]. - Investors are closely monitoring Tesla's first-quarter earnings, as high valuations could lead to significant stock price volatility based on performance [6]. Group 2: Nvidia - Nvidia is widely regarded as a strong buy, with 39 out of 42 analysts recommending the stock, suggesting nearly 50% upside potential [7]. - The emergence of a Chinese start-up, DeepSeek, which developed a chatbot using older Nvidia chips, raised questions about the necessity of Nvidia's technology in the AI sector [8]. - Despite these concerns, Nvidia's CEO Jensen Huang remains optimistic, asserting that increased data demand will enhance the need for Nvidia's products [9]. - Nvidia's stock now trades at 26 times forward earnings, down from previous peaks above 50, with analysts projecting earnings growth of about 48% for fiscal year 2026 [10].