Why Tesla (TSLA) Is Scaling Back In-House Chips and Teaming Up With Nvidia

Tesla, Inc. (NASDAQ:TSLA) is one the AI Stocks Investors Are Watching Closely. On August 11, Morgan Stanley maintained the stock as Overweight and also reiterated it as its top pick.

The firm highlighted reports that Tesla is scaling back its in-house custom silicon computing ambitions. Instead, it is focusing more on partnerships with suppliers like Nvidia to enhance its inference capabilities.

Why Tesla (TSLA) Is Scaling Back In-House Chips and Teaming Up With Nvidia

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Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $329 implies a 3.47% upside; however, the Street-high target of $500 implies an upside of 46.7%.

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the risk and potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.