Wall Street Has 10 Trillion-Dollar Stocks: Select Analysts See One Adding 64% Over the Next Year, With Another Projected to Crater by 95%

Core Viewpoint - Wall Street analysts have divergent opinions on the performance and future prospects of the most influential trillion-dollar companies, particularly Nvidia and Tesla, highlighting significant potential upside for Nvidia while forecasting substantial downside for Tesla. Group 1: Nvidia - Nvidia is viewed as a leader in the artificial intelligence (AI) sector, with a potential market cap of $7.3 trillion based on a price target increase to $300 per share, representing a 64% upside from its closing price on October 10 [5][3]. - Analyst C.J. Muse believes Nvidia will control at least 75% of the AI-accelerator market, supported by strong demand from hyperscalers and a partnership with OpenAI [6][4]. - Nvidia's competitive edge is reinforced by its continuous innovation, with plans to release new advanced AI GPUs annually, maintaining its technological advantage over competitors [7]. - The CUDA software platform is a critical asset for Nvidia, enabling developers to maximize the potential of its hardware and ensuring customer retention within its ecosystem [8]. - Despite optimism, historical trends suggest that new technologies often experience bubble-like conditions, raising concerns about the sustainability of Nvidia's current valuation [9][10]. - A potential risk for Nvidia is that major customers are developing their own AI chips, which, while inferior, are cheaper and more accessible, potentially impacting Nvidia's market share [11][12]. Group 2: Tesla - Tesla faces skepticism from analysts, particularly Gordon Johnson, who has set a price target of $19.05 per share, citing structural disadvantages and valuation concerns [13][14]. - Tesla's revenue model relies heavily on lower-margin hardware sales, contrasting with other major tech companies that benefit from high-margin software, leading to reduced pricing power for Tesla [15]. - Tesla's current valuation is significantly high at 242 times forecast earnings per share for 2025, while its sales are projected to decline by 4% this year [16]. - CEO Elon Musk's history of overpromising on technological advancements, such as Level 5 autonomy, raises concerns about the credibility of Tesla's future growth prospects [17][18]. - Unfulfilled promises from Musk are factored into Tesla's valuation, suggesting that if these were excluded, the stock price could align more closely with Johnson's target [19].