The stock market started March with a fresh wave of volatility, as initial optimism quickly faded into losses. Following a lackluster February, investors hoped for a rebound, but early gains were erased, with all three major indices turning red.
Nvidia’s Slide Weighs on Markets
The biggest drag on the markets today is Nvidia (Nasdaq: NVDA), which is experiencing a sharp 5% decline. As one of the primary drivers of the recent AI boom, Nvidia’s stock has been highly sensitive to market sentiment and industry shifts. Today’s downturn has weighed on the broader market, with the Nasdaq Composite leading the losses.
- Dow Jones Industrial Average: Down 11.43 points (-0.03%)
- Nasdaq Composite: Down 120.47 points (-0.62%)
- S&P 500: Down 19.33 points (-0.32%)
Despite Nvidia’s setback, some stocks are breaking the trend and trading firmly in positive territory.
Tesla Reclaims $300 Amid Bullish Outlook, But Faces New Risks
Tesla (Nasdaq: TSLA) is among the standout performers today, gaining nearly 3% and surpassing the $300 per share mark. The electric vehicle giant received a major vote of confidence from Morgan Stanley, which named it a “top pick” among auto stocks and assigned a bullish $430 price target—implying a 50% upside. The surge in Tesla’s stock has also propelled CEO Elon Musk’s net worth to approximately $351 billion, reinforcing his position as one of the world’s wealthiest individuals.
Tesla shares rose another 2% on Monday after Morgan Stanley reinstated its “top pick” status, emphasizing the company’s artificial intelligence and robotics initiatives as key drivers of future growth. Analyst Adam Jonas, a longtime Tesla bull, noted that Tesla’s current stock slump may present an attractive entry point. Jonas believes that Tesla’s expansion into “embodied AI” and its upcoming robotaxi service in June 2025 could be major catalysts.
Embodied AI refers to artificial intelligence that interacts with and learns from the physical world using sensors to refine its machine-learning process. Tesla’s AI-driven initiatives, including the Optimus humanoid robot and lower-priced vehicle launches expected later this year, are seen as critical to the company’s long-term success.
Despite the bullish outlook, Tesla faces growing challenges. Sales plunged 45% in Europe in January, even as overall EV sales in the region grew. Reports also indicate falling sales in California, Tesla’s largest U.S. market, along with the company’s first annual global sales decline last year. Furthermore, concerns are mounting that Musk’s increasing political involvement could be damaging Tesla’s brand image in the U.S. and Europe.
Tesla stock recently broke below key support levels in the $325-$360 range and dipped under the $300 mark. On Friday, shares hit a fresh three-month low at $273.60 but rebounded to close with a 3.9% gain. Now, TSLA is battling to hold above its 200-day moving average, a crucial technical level for investors.
Palantir Surges on Government Contract Momentum
Palantir Technologies (Nasdaq: PLTR) is another big gainer today, climbing over 4% to approach $90 per share. The stock is rising after investment bank Wedbush reiterated its bullish stance on the AI-driven data analytics firm.
Wedbush analysts, led by Dan Ives, believe Palantir is well-positioned to secure increased revenue from the federal government over the next year, despite Washington’s cost-cutting efforts. The firm maintains an Outperform rating on Palantir with a $120 price target, signaling significant upside potential.
According to Wedbush, Palantir’s AI-focused solutions align with high-priority government initiatives, particularly within the Department of Defense. The bank expects Palantir to gain more contracts and budget allocations from various government agencies, reinforcing its dominance in the AI and cybersecurity sectors.
Analysts anticipate Palantir’s earnings per share to grow from $0.41 in 2024 to $0.56 this year. However, the stock remains expensive, trading at a forward price-to-earnings ratio of 147x.
Meta Platforms Expands AI Ambitions
Meta Platforms (Nasdaq: META) is extending its recent rally as news emerges about its upcoming AI-powered app. The tech giant is reportedly preparing to launch a standalone artificial intelligence application to compete directly with OpenAI’s ChatGPT and Google’s Gemini in 2025. The move signals Meta’s deeper commitment to the AI space, further positioning itself as a key player in the rapidly evolving sector.
As investors navigate through today’s market swings, the divergence between tech giants highlights the ongoing battle for dominance in AI, EVs, and enterprise analytics. With market sentiment shifting rapidly, all eyes remain on the Federal Reserve, macroeconomic data, and corporate earnings to gauge the next big move.
