Introduction
The stocks of NVIDIA and Tesla are currently in a correction mode, which is of great importance for investors. In this article, we shed light on the current situation as well as future developments of these two companies.
NVIDIA Stock
The NVIDIA stock has seen a significant increase in 2024, but it has fallen by over 20% since its all-time high. Analysts predict an average price target of 174.81 USD for 2025, representing a gain of about 45% compared to the current price. NVIDIA is a leader in AI-driven technologies and remains a key player in the semiconductor industry. However, the cyclical nature of investments from major cloud customers could affect the sustainability of this growth. The company expects a slowdown from a phase of hypergrowth to moderate expansion. Gross margins are expected to be between 70.6% and 71.0%.
Tesla Stock
The Tesla stock has experienced a significant loss in value in the first quarter of 2025, with a decline of over 53% since its peak in December 2024. The current price is about 226 EUR (approximately 250 USD). Cathie Wood predicts a long-term price target of 2,000 to 3,100 USD by 2029, based on strong growth assumptions in the areas of electric vehicles and autonomous technologies. However, other analysts see a potential overvaluation of the stock. Tesla is a leader in electric vehicles, but the company did not meet its sales figures in the first quarter of 2025, leading to uncertainty among investors.
Relevance for Investors
Both stocks are in a correction mode, meaning they have fallen from their peaks. This can represent both an opportunity for new investments and a risk, as further correction lows are possible. The future market development will be influenced by various factors, including technological advancements, competition, and macroeconomic conditions. Investors should make their investment decisions based on a careful analysis of the current market situation and future forecasts. It is important to consider volatility and potential risks.