Tuesday's analyst calls: Nvidia a top AI pick, Tesla cutting prices too much?
(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Nvidia and two electric vehicle makers were in focus in the analyst chatter for Tuesday. Baird named Nvidia a top artificial intelligence/machine learning play, calling for a more than 20% gain in the stock. Meanwhile, Goldman Sachs noted Tesla and Rivian need to be careful when cutting prices. Check out the latest calls and chatter below. All times ET. 5:45 a.m.: Baird names Nvidia a top AI/ML idea, thinks shares can pop more than 20% Nvidia and several big tech companies, including Amazon and Meta Platforms , are included in Baird’s updated top ideas in artificial intelligence and machine learning. “While the implications of AI vary across sectors, we collectively believe the AI tidal wave is still in the early innings,” Analyst Tristan Gerra wrote in a Tuesday note. “Thus, we are updating our list of companies that we believe have advanced AI capabilities and/or will be the biggest beneficiaries of the rise of AI-powered applications.” Gerra noted that Nvidia has been one of the major early beneficiaries of the AI momentum, but that it’s growth is “more than hype.” Baird’s $1,050 price target suggests shares can still climb more than 23%. Nvidia’s stock, which is up more than 72% this year, edged lower 1.2% in premarket trading. Meta is a new addition to Baird’s top picks. The firm noted the Facebook owner as a generative AI infrastructure leader alongside Amazon and Google, and said the company is rapidly improving its generative AI capabilities and is well-positioned to continue building AI into customer-facing applications. Baird’s $525 price target implies 5.4% potential upside for Meta shares. The stock is up more than 40% this year, and dipped about 0.7% in Tuesday’s premarket. — Pia Singh 5:45 a.m.: Tesla and Rivian need to be more selective on price cuts, Goldman says Goldman Sachs thinks Tesla and Rivian need to be careful when they cut prices. “Our analysis suggests that Tesla and Rivian should be targeted on additional price reductions in the US that are faster than cost downs, with the Model 3/Y already affordable to many US consumers, and Rivian generally selling to a less price sensitive consumer at ~$70K+ price points,” analyst Mark Delaney wrote. “While our analysis shows that a 1% price reduction generally correlates to a low single digit increase in volume in the mainstream part of the market, we estimate that incremental broad-based price cuts to Model 3/Y would be negative to profit dollars at least in the short-term,” he added. Electric vehicle makers have struggled recently as consumers opt for more internal combustion engine and hybrid cars. Rivian is already down more than 53% this year, while Tesla has lost 24%. TSLA RIVN YTD mountain RIVN and TSLA year to date Delaney has a neutral rating on both stocks. His Tesla target of $220 implies upside of 17%, while his $13 forecast on Rivian points to a 19% gain from here. — Fred Imbert
