Wedbush’s top analyst Daniel Ives calls Tesla (TSLA) and Nvidia (NVDA) “the two indispensable pillars of the burgeoning physical AI market.” Ives is doubling down on his bullish outlook for the electric vehicle (EV) giant and chip leader as cornerstones of the “fourth industrial revolution.”
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He argues that while the tech world remains fixated on large language models (LLMs) and chatbots, the real value lies in machines that interact with the physical world. Ives is a five-star analyst on TipRanks, ranking #390 out of 12,040 analysts tracked. He has a 56% success rate and an average return per rating of 16.80%.
Tesla Leaps toward Autonomy
The Elon Musk-led automaker reported better-than-expected Q4FY25 results and reaffirmed its focus on physical AI. Tesla will stop producing higher-end versions of Model S and X to free up space for producing Optimus robots, advancing toward an “autonomous future.”
Ives notes that Tesla’s story has evolved from chasing vehicle deliveries to high-margin software. He sees Full Self-Driving (FSD) as the key valuation driver, with adoption potentially surging from 12% to 50%.
Ives explained that “the $600 base case and $800 bull case is driven by margins that will soon take hold.” He calls 2025 a “huge transition year” for Tesla and 2026 a “golden year,” powered by FSD, autonomous Cybercabs, and Optimus robots.
Currently, Ives has a Buy rating and $600 price target on TSLA, which implies 44% upside potential from current levels.
Nvidia’s Jensen Is the Godfather of AI
Ives has long hailed Nvidia CEO Jensen Huang as the “godfather of AI.” He positions Tesla as the “visionary” side of physical AI, with Nvidia as the bedrock. Under Huang, Nvidia supplies the crucial hardware for autonomous systems and industrial robotics.
Ives believes Nvidia will continue leading the infrastructure fueling the AI boom. He argued that Nvidia stays “four to five years ahead of any other chip player,” positioning it as the top beneficiary from tech’s massive capex surge.
Wedbush’s Matt Bryson has a Buy rating on NVDA and a $230 price target, implying 19.5% upside potential.
Ives Views on Energy Scarcity
As AI’s “arms race” heats up, Ives warns that power, not capital or engineering, is the key constraint. He noted that more data centers are under construction than operating, which is straining the grid.
He believes that vertical integration like custom cooling and on-site power is essential to beat the “power crunch.” Ives stated that “it’s not capex or tech holding us back, it’s energy shortages.”
What Are Analysts’ View of Tesla and Nvidia?
Using TipRanks Stock Comparison Tool, we identified that analysts have a “Strong Buy” consensus rating on NVDA, but a “Hold” consensus on TSLA due to its declining EV sales.
