Tesla shares soar 10% after Morgan Stanley upgrade

Published

2 years ago

September 11, 2023

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SHANGHAI, CHINA – SEPTEMBER 06: Aerial view of Tesla vehicles waiting to be loaded on board a roll-on-roll-off cargo vessel at Nangang port on September 6, 2023 in Shanghai, China. (Photo by VCG/VCG via Getty Images)

Vcg | Visual China Group | Getty Images

Tesla shares rose more than 10% Monday after a Morgan Stanley upgrade, and optimistic note that envisioned Tesla selling AI technology to other automakers, and saving money by using its own GPUs as much as possible, rather than paying for chip supply from Nvidia.

Morgan Stanley analysts argued that Tesla should be viewed as a tech company as much as an electric car maker. The firm set its new price target at $400 for shares of Tesla, up from a previous price target of $250, as of Monday emphasizing the potential of Tesla’s Dojo supercomputer project and custom silicon. Morgan Stanley believes Dojo could theoretically add up to $500 billion to the company’s value long-term.

CEO Elon Musk said in July this year said Tesla planned to spend more than $1 billion on Dojo by the end of 2024. Tesla is developing Dojo to help with AI machine learning and computer vision training purposes for its cars and nascent robotics effort. Among other things, Tesla uses video clips and data from its customers’ vehicles to improve existing software, and develop new features.

Highly bullish Tesla analyst Adam Jonas wrote in his note on Monday, “Although Dojo is still early in its development, we believe that its applications long-term can extend beyond the auto industry. Dojo is designed to process visual data which can lay the foundation for vision-based AI models such as robotics, healthcare and security. In our view, once Tesla makes headway on autonomy and software, third party Dojo services can offer investors the next leg of Tesla’s growth story.”

Morgan Stanley also expects Tesla to be able to generate $2,160 in recurring revenue every month from its vehicle owners in 2030, from services enabled by Dojo and subscription software in cars like self-driving systems, which Tesla does not offer today, vehicle charging services, maintenance, software upgrades, content and others to be developed in the future.

Elon Musk promised a Tesla would complete a self driving cross-country demo without any human intervention by the end of 2017. Tesla vehicles still only offer advanced driver assistance systems, which require a human behind the wheel, ready to steer or brake at any second.

By contrast, another firm that is bullish on Tesla, Deutsche Bank, noted risks to the EV maker in Q3 from “planned summer production shutdowns which will push both production and deliveries down QoQ, discounts on inventories, and limited positive costs offsets in the quarter,” and set a price target at $300 in a note out September 6.

Earlier this quarter, Tesla slashed the prices of its electric vehicles after executives cautioned investors on the company’s last earnings call that production and delivery volumes would likely decline this period versus the second quarter due to planned factory closures.

Tesla also cut the price to purchase its premium driver assistance system, marketed in the U.S. under the Full Self-Driving or FSD brand name, from $15,000 to $12,000. Those price cuts, among other things, had weighed on Tesla’s share price in recent weeks. But after the Morgan Stanley note on Monday, Tesla shares spiked above $272 mid-day.

Technology

More demand than supply gives companies an edge, Jim Cramer says

Published

15 hours ago

October 24, 2025

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More demand than supply gives companies an edge, Jim Cramer says

“Supply constrained,” are the two of the most important words CNBC’s Jim Cramer said he’s heard so far during earnings season and explained why this dynamic is favorable for companies.

“When you’re supplied constrained, you have the ability to raise prices, and that’s the holy grail in any industry,” he said.

Intel‘s strong earnings results were in part because of more demand than supply, Cramer suggested. He noted that the company’s CFO, David Zinsner, said the semiconductor maker is supply constrained for a number of products, and that “industry supply has tightened materially.”

Along with Intel, other tech names that are also supply constrained and performing well on the market include Micron, AMD and Nvidia, Cramer continued.

These companies don’t have enough product in part because the storage needs of artificial intelligence are incredible high, Cramer said. He added that he thinks demand has overwhelmed supply because semiconductor capital equipment companies didn’t manufacture enough of their own machines as they simply didn’t anticipate such a volume of orders.

Outside of tech, Cramer said he thinks airplane maker Boeing and energy company GE Vernova are also supply constrained, adding that he thinks the former will say it’s short on most of its planes when it reports earnings next week. GE Vernova is supply constrained with its power equipment, like turbines that burn natural gas, he continued, which is the primary energy source for the ever-growing crop of data centers.

GE Vernova and Boeing are also set to be winners because they make big-ticket items that other countries can buy from the U.S. to help close the trade deficit, Cramer added.

“In the end, we have more demand than supply in a host of industries and that’s the ticket for good stock performance,” he said. “I don’t see that changing any time soon.”

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Technology

3 takeaways from Intel earnings: Cash flow, foundry progress and hardware surprise

Published

20 hours ago

October 24, 2025

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3 takeaways from Intel earnings: Cash flow, foundry progress and hardware surprise

Wall Street remains skeptical on Intel despite its return to profitability

Intel snapped a losing streak of six straight quarterly losses and returned to profitability in the third quarter.

In its first earnings report since the Trump administration acquired a 10% stake in the company, the U.S. chipmaker posted strong revenue, noting robust demand for chips that it expects to continue into 2026.

Client computing revenue, which includes chips for PCs and laptops, grew 5% year over year, benefiting from PC market stabilization and artificial intelligence PC prospects.

CEO Lip-Bu Tan said in a call with analysts Thursday that artificial intelligence “is a strong foundation for sustainable long-term growth as we execute.”

The chip strength and demand were bright spots, but there were areas of concern as well, with the company’s foundry business still needing a big break.

Here are three takeaways from the chipmaker’s Q3 report:

Cash flow

“We significantly improved our cash position and liquidity in Q3, a key focus for me since becoming CEO in March,” Tan said on a call with analysts Thursday.

Intel landed an $8.9 billion investment from the U.S. government in August, along with $2 billion from Softbank, but has not yet received the $5 billion tied to a deal with Nvidia. The company expects that deal to close by the end of Q4.

With all of those transactions completed, plus the Altera sale, Intel will have $35 billion in cash on hand, CFO David Zinser told CNBC.

The U.S. government is the company’s biggest shareholder, and Intel stock is up more than 50% since Aug. 22, when Commerce Secretary Howard Lutnick announced the deal.

“Like any shareholder, we have to keep in touch with them,” Zinser said of the U.S. stake. “We don’t tell them how the numbers are going before the quarter. We generally talk to them like Fidelity,” another Intel shareholder.

Stock Chart IconStock chart icon

Intel 3-month stock chart.

Foundry

The firm’s foundry remains a work in progress.

Revenue fell 2% over the year before, and it has yet to land a major customer.

Intel now has two fabs running 18A nodes, which are designed for AI and high-performance computing applications.

“We are making steady progress on Intel 18A,” Tan said of its latest chip technology. “We are on track to bring Panther Lake to market this year.”

Zinser said the more advanced 14A nodes won’t be put in supply until the company has “real firm demand.”

Old stuff still selling

Zinser said the company’s older chipmaking processes, or nodes, have continued to do well, “and that was probably the part that was more unexpected.”

Zinser said the chipmaker met some of the central processing unit (CPU) demand with inventory on hand, but they will be behind in Q1, “probably Q2 and maybe in Q3.”

The supply crunch has been with older Intel 10 and 7 manufacturing technologies.

Many customers are opting for less advanced hardware to refresh their operating systems, demonstrating enterprises aren’t waiting for cutting-edge chips when proven technology gets the job done.