Tesla, Inc. (NASDAQ:TSLA) shares are trading way off their highs and have been through a volatile bout amid the electric vehicle maker’s fundamental challenges. While detractors don’t give a chance for the company to turn things around, CEO Elon Musk sported optimism laced with caution.
What Happened: A Tesla influencer tried to capitalize on the Nvidia frenzy seen after the release of the AI frontrunner’s stellar quarterly results on Wednesday and commented that “Valuing Tesla based on expectations for the auto business is like valuing Nvidia based on expectations for the gaming GPU segment.”
“Yeah,” Musk said, giving his nod to the view.
Yeah — Elon Musk (@elonmusk) May 23, 2024
Anybody who has closely followed Nvidia over the years may know that the Jensen Huang-led company has been one of the most dynamic corporations in the U.S., lapping up every new opportunity coming its way.
Nvidia, founded in in April 1993 by the trio of Huang, Chris Malachowsky and Curtis Priem, started off a gaming chipmaker on the premise that PCs would one day become consumer devices for enjoying games and multimedia. Incidentally, the Santa Clara, California-based chipmaker is being credited as the inventor of graphic processing units, which power PCs used for gaming
Up until the fourth quarter of 2022, Nvidia’s Gaming segment was its biggest revenue earner. Revenues from Gaming, and Data Center, its next-highest revenue-raking segment, were at $3.42 billion and $3.26 billion, respectively, in the fourth quarter of fiscal year 2022.
Come 2023, with the advent of the AI revolution, ...