Tesla (TSLA) +2% Tesla shares bounced after a rough Monday, despite being down 36% in Q1 — the worst Q1 in company history. Investors are now eyeing its Q1 delivery report due Wednesday, with Street estimates hovering around 380,000 units . Analysts have been revising expectations lower amid backlash over Elon Musk’s role in Trump’s administration. Chinese EV Makers Up XPeng (XPEV) +1.6% : Delivered 33,205 vehicles in March — its fifth straight 30k+ month. NIO (NIO) +1.6% and Li Auto (LI) +1.4% also gained on strong March deliveries. Nvidia (NVDA) -0.6% Still under pressure after a 19.3% Q1 drop , its worst since 2022. Investor worries over AI spending, tech valuation, and trade tensions are weighing heavily. Johnson & Johnson (JNJ) -5% Fell after a Texas judge dismissed J&J’s third bankruptcy attempt to settle talc-related lawsuits via Chapter 11. PVH Corp (PVH) +18.9% Shares surged after Q4 earnings beat expectations ...
U.S. Stocks Gaining Momentum
U.S. stocks, after being weighed down by the Trump administration's tariff policies, are showing signs of improvement. The "Mag 7" (Apple, Microsoft, Amazon, Nvidia, Google, Meta, and Tesla) collectively rallied on Monday, with Teslaseeing a dramatic surge of 11.93%, adding $95 billion to its market value in one session. The rally was driven by potential tariff exemptions, with President Trump hinting at breaks for certain countries on his upcoming tariffs.
Analysts See a Turnaround
Morgan Stanley analysts believe the worst of the equity sell-off is over, pointing to a decline in the U.S. dollar as a positive sign. Historically, a weaker dollar boosts earnings for U.S. companies, which could create favorable conditions for a recovery in U.S. stocks. The Mag 7 stocks' earnings outlooks are stabilizing, and tariff uncertainty has been a key catalyst for recent market volatility.
However, Academy Securities cautions that while uncertainty might ease post-April 2 tariff announcements, the ripple effects could lead to renewed selling pressures.
Which Mag 7 Stock Has the Best Growth Potential?
From analysts' average target prices, NVIDIA has the highest potential upside, with a 47% growth forecast, followed by Amazon and Microsoft.
NVIDIA (NVDA)
Strong AI Demand: Morgan Stanley and Wedbush analysts are bullish on NVIDIA's future, citing the growing AI market and its expanding role in AI infrastructure.
AI Multiplier Effect: For every $1 invested in NVIDIA chips, there's an estimated $8-10 multiplier effect across the tech ecosystem. This positions NVIDIA to benefit from the $2 trillion in AI capital expenditure expected in the next three years.
Microsoft (MSFT)
AI-Fueled Growth: Jefferies sees Microsoft's Azure growth driven by AI and predicts strong, but gradual adoption of M365 Copilot, which could significantly contribute to profits by FY2026.
Attractive Entry Point: Despite some underperformance, analysts consider Microsoft one of the top mega-cap picks with a $550 price target.
Alphabet-C (GOOG)
AI & Cloud Security: Google’s $32 billion acquisition of Wiz positions it well for growth in AI and cloud security. Goldman Sachs believes Google’s scale and integration across apps and AI will fuel long-term growth.
Tesla (TSLA)
Short-Term Pressures, Long-Term Optimism: Despite recent short-term delivery challenges and some risks surrounding brand politicization, Tesla's focus on AI and Robotaxi development keeps long-term growth prospects strong. ARK Invest's Cathie Wood maintains a $2,600 price target for 2029.
Conclusion
As U.S. equities show signs of recovery, NVIDIA stands out among the Mag 7 stocks for its impressive growth potential, driven by robust demand for AI technology. With AI at the core of its future growth and an expanding market, NVIDIA is poised to deliver significant returns.
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