We may earn commissions if you use the recommended services on this site.  

Morgan Stanley's Favorable Outlook on 4 Tech Stocks Supplying Tesla's Supercomputer

Latest Business News

Morgan Stanley's Favorable Outlook on Tech Stocks Supplying Tesla's Supercomputer

Morgan Stanley has recently shared its positive stance on a list of global stocks, with four of them being key suppliers for Tesla's supercomputer system, known as Dojo. According to analysts, Dojo has brought about a revolution in the AI chip industry, resulting in significant efficiencies and cost savings. Morgan Stanley believes that these tech stocks are well-positioned for the acceleration of custom chip design by US hyperscalers, particularly as custom chips are expected to outgrow AI graphics processing units in the long term.

Powering Tesla's Dojo

Morgan Stanley's research note highlights Taiwan Semiconductor Manufacturing Company (TSMC) as the wafer foundry vendor for Tesla's Dojo 1 (D1) and Dojo 2 (D2). The analysts maintain an overweight position on TSMC, projecting a 32% upside from its price on September 12. Additionally, Morgan Stanley has raised its price target on AIchip, a company that provides part of the design service for Dojo 1 and generates 5% of its revenue from the project. Samsung, a key foundry supplier for Tesla's FSD (full self-driving) chip, has also received an overweight rating from the bank. Samsung supplies 32GB of high-bandwidth memory for the Dojo interface processor and is expected to see a 35% upside from its September 12 price.

Positive Outlook on Nvidia and New Addition to the Radar

Morgan Stanley also expresses a favorable view on Nvidia, as Tesla continues to expect Dojo to operate alongside Nvidia GPUs. The bank is overweight on Nvidia and has set a price target of $630, indicating a 39% upside from its September 12 price. Furthermore, Taiwanese semiconductor company MediaTek has been upgraded from "neutral" to "overweight" on Morgan Stanley's list of global technology stocks. The analysts believe that MediaTek, with its sufficient and cheaper engineering resources, is well-positioned to secure one of Google's TPU projects. This diversification away from its smartphone-centric business towards AI could trigger a stock re-rating. MediaTek has been given a target price of 888 Taiwanese dollars, representing a 21% upside from its September 12 price. In conclusion, Morgan Stanley's positive outlook on tech stocks supplying Tesla's supercomputer reflects their belief in the potential of custom chip design and the growth of AI applications. The bank's favorable stance on TSMC, Samsung, Nvidia, and MediaTek highlights their confidence in these companies' ability to capitalize on the expanding AI market and contribute to the advancement of Tesla's Dojo system.

Conclusion: Implications of Morgan Stanley's Tech Stock Outlook for New Businesses

Morgan Stanley's positive stance on tech stocks supplying Tesla's supercomputer, Dojo, offers a "hot take" on how such market trends can impact new businesses. The key takeaway is that the growth of AI applications and the potential of custom chip design can present significant opportunities for new businesses in the tech sector.

Recognizing the Potential of AI and Custom Chip Design

New businesses, particularly in the tech sector, should note the potential of AI applications and custom chip design. These areas are expected to outgrow traditional AI graphics processing units in the long term, presenting significant opportunities for growth and innovation.

Strategic Planning for New Businesses

New businesses should consider these trends in their strategic planning. By focusing on AI applications and custom chip design, they can position themselves well for the future and capitalize on the expanding AI market.
Final Thoughts
In conclusion, Morgan Stanley's favorable outlook on tech stocks supplying Tesla's supercomputer highlights the potential of AI applications and custom chip design for new businesses. By recognizing these trends and incorporating them into their strategic planning, new businesses can position themselves for success in the rapidly evolving tech sector.
Story First Published at: https://www.cnbc.com/2023/09/15/morgan-stanley-buy-these-tech-stocks-which-supply-tesla-dojo.html
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.