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Nvidia Shares (NVDA) Power Ahead as Tesla (TSLA) Shifts Into Reverse

Analyst Team trader
Updated 2 Apr 2024

The proverbial race among the titans of the tech industry has shown a stark contrast in the performance of two prominent companies, Nvidia Corporation (NASDAQ:NVDA) and Tesla Inc. (NASDAQ:TSLA), each taking divergent paths in their market fortunes in 2024 so far.

Nvidia shares have had an impressive YTD, with its price shooting up 87.6%. Tesla shares on the other hand have had a 2024 to forget so far, down 29.47% YTD, but having staged a mini rally over the last 5 days, climbing 3.83%.

Nvidia, the powerhouse known for its graphics processing units (GPUs) and ground-breaking artificial intelligence (AI) technologies, has left investors and market onlookers in awe with an astounding 87.6% surge in its stock price year-to-date. This impressive rally follows a breath-taking climb of 245% throughout 2023, highlighting the company's unassailable momentum.

This growth trajectory has firmly established Nvidia as a leader among the elite group known as the Magnificent Seven technology companies. Their competitive edge is further evidenced by the company capturing a whopping 92% share of the Data Centre GPU Market, demonstrating their strategic focus on AI, gaming, and data centre solutions—all sectors poised for sustained growth.


On the other end of the spectrum lies Tesla, the electric vehicle (EV) pioneer helmed by the enigmatic entrepreneur Elon Musk. Contrary to Nvidia's upward trajectory, Tesla's performance in the stock market has cast a shadow on its otherwise luminescent narrative. The company's shares have experienced a 29.47% decline in the same timeframe, a significant drop that has raised eyebrows considering Tesla's previously illustrious run in the market.

Throughout the first quarter, Tesla, alongside Apple Inc., faced the brunt of declines, whilst the remaining members of the Magnificent 7 added double digit gains. The relative underperformance by Tesla underscores the growing pains and operational challenges it faces within the competitive and swiftly evolving EV market. Having been thought of as a company that has many mini tech companies within its' ecosystem, Tesla is also underperforming against the Nasdaq 100, with the tech heavy index also seeing gains of more than 10% through Q1.

In stark contrast to Nvidia's relatively smooth sailing, Tesla must manoeuvre through production snags and intensifying competition to steer back into the market's good graces.

As investors continue to decipher the dynamic shifts in the tech landscape, Nvidia's ascension and Tesla's disturbance serve as reminders of the volatile nature of the industry, where innovation, strategic foresight, and market perception can make or break giants once deemed infallible.

Nvidia forges ahead with its ambitious AI pursuits and dominance in the data center arena, Tesla's journey ahead is fraught with hurdles that require strategic navigation.

Eyes will undoubtedly remain fixed on these two tech giants as they carve their trajectories in vastly different directions within the confines of the Magnificent Seven.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.