Today's session for American tech companies is showing mixed sentiments. The Nasdaq100 spot index is down by nearly 0.4% today, driven mainly by the shares of Tesla and Nvidia, although 'top podium' companies Microsoft and Apple are performing very well today.
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Microsoft (MSFT.US) is recording nearly a 2% increase after the company announced its intention to enable Copilot AI services for security from April 1 and informed about further agreements and cooperation between Microsoft Azure and Oracle Cloud.
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Apple (AAPL.US) is gaining over 1.5% following its acquisition of the startup DarwinAI, joining the race in the artificial intelligence trend. According to media reports, dozens of Darwin's employees have already joined the AI sector within the company.
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Shares of Nvidia (NVDA.US) have been falling since the beginning of the Wall Street session as investors prepare for a significant AI-related conference scheduled for March 18, dedicated to GPU chip technology. According to Reuters reports, companies Qualcomm, Alphabet, and Intel plan to jointly challenge Nvidia's shares in the AI software market through a specially established entity, UXL.
Tesla (TSLA.US) is the biggest laggard of the session.
Tesla is the weakest company among the BigTech on Wall Street today, with its shares losing nearly 5% and being one of the weakest performers in the S&P 500 this year.
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On Tuesday, Wells Fargo changed its rating of the stock and suggested that Tesla is priced as a growth company where no growth is seen, and the manufacturer may be forced to further reduce prices and margins by 2025 as demand for EVs decreases and competition from China increases.
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UBS also shared Wells Fargo's view and downgraded Tesla's stock, citing concerns related to industry dynamics and market share. Except for Tesla, all companies of the 'magnificent seven' recorded double or triple-digit profit growth in the last three months of 2023.
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Tesla recorded a 40% profit decline year-over-year. The company's stock price has fallen by about 60% compared to its record level in 2021, which was $407. Wells Fargo lowered its target price for the stock from $200 to $125, predicting a further 25% decline in value. UBS lowered its target price to a more moderate level of $165 from $225.
Source: xStation5
