Nvidia Shares Fall 2% Despite Musk’s Chip Endorsement, Price Target Hits $287
Nvidia shares fell 2% after Elon Musk confirmed Tesla and SpaceX will continue sourcing Nvidia AI and data-center chips despite Tesla’s Terafab project. CEO Jensen Huang forecast $1 trillion revenue from Blackwell and Vera Rubin AI processors through 2027; Truist Securities raised its price target to $287 with a Buy rating.
1. Stock Reaction
Nvidia shares fell approximately 2% in early trading on Thursday, even as peer chipmakers Broadcom and AMD showed limited movement. The pullback followed a series of high-profile endorsements and forecast announcements at Nvidia’s recent developer conference.
2. Musk Confirms Continued Chip Orders
Elon Musk stated that Tesla and SpaceX will continue sourcing Nvidia’s AI and data-center processors at scale, underscoring persistent demand for Nvidia’s offerings. He added that Tesla’s Terafab semiconductor plant will not fully replace Nvidia chips in the near term.
3. Strong Forecast and Analyst Upgrade
CEO Jensen Huang projected $1 trillion in cumulative revenue from the company’s Blackwell and Vera Rubin AI processors by 2027. In light of the forecast and confirmed customer demand, Truist Securities raised its price target from $283 to $287 and maintained a Buy rating on Nvidia shares.