Tesla Approaches Meta in Market Cap, Future Dependent on Robotics Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Cap Competition: Tesla's stock hit an all-time high on December 15, bringing it close to surpassing Meta and Broadcom to become the sixth-largest U.S. company, reflecting strong investor excitement over its future robotics and AI investments.
- Declining Profitability: Tesla's operating margin fell to 5.8% in Q3 2025 from 10.8% in Q3 2024, indicating significant pressure from slowing growth and rising costs, which could impact its long-term investment appeal.
- Valuation Driven by Future Expectations: While Tesla's future potential is highly regarded, its current valuation is based on anticipated future earnings rather than actual profits, which may lead to poor stock performance over the next three to five years, necessitating caution from investors.
- Comparison with Nvidia: Unlike Tesla, Nvidia is leveraging its high margins and strong cash flow to capitalize on the AI market, positioning itself as a potential leader in profitability in the coming years, contrasting sharply with Tesla's speculative valuation challenges.
NVDA
$183.69+Infinity%1D
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 180.990
Low
185.00
Averages
255.63
High
352.00
Current: 180.990
Low
185.00
Averages
255.63
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
