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CEO Jensen Huang wishes he had invested more in xAI. (0:15) Analysts react to Tesla price cuts. (0:58) Dell rallies again. (1:58)
This is an abridged transcript of the podcast:
Our top story so far, Nvidia (NASDAQ:NVDA) CEO Jensen Huang confirmed that his company has invested in the latest funding round for Elon Musk’s generative artificial intelligence outfit xAI (X.AI).
He said on CBNC he was excited about the xAI’s financing opportunities — and that he regretted not giving it even more money. Huang added that he wants to be involved in everything that Musk does.
More regrets — Huang expressed disappointment that Nvidia did not invest more money into CoreWeave (CRWV), an AI data center company that has strong ties to Nvidia.
This comes days after Nvidia announced plans to invest up to $100 billion in OpenAI over several tranches as the ChatGPT maker builds at least 10 gigawatts of data-center capacity using Nvidia systems.
Huang says every gigawatt of power is roughly 4M to 5M Nvidia GPUs.
Also in the Muskoverse, Deepwater Asset Management analyst Gene Munster says “bravo” to Tesla (TSLA) for cutting the price of the Model Y to $40,000 and the Model 3 by $2,000, down to $37K. That makes the 16% delivery growth that Wall Street is looking for in 2026 more likely.
Futurum’s Shay Boloor called it a pricing lever that won’t unlock new demand “at scale.”
And SA Investing Group Leader Daniel Jones took a broader view, tagging Tesla with a Strong Sell rating due to valuation tied to what he calls irrational exuberance. (Nice Greenspan callback there.)
Among active stocks, J.P. Morgan downgraded FedEx Corporation (FDX) to Neutral from Outperform based on recent channel.
Analyst Brian Ossenbeck said full-year EPS guidance is at risk, given it already embeds a rebound in Freight fundamentals.
Optical chipmaker POET Technologies (POET) is rallying to a three-year high after raising $75 million.
Rocket Lab USA (RKLB) is at an all-time high after signing a deal with Japan’s Institute for Q-shu Pioneers of Space to be the primary launch provider.
And echoing Tuesday’s rally, Dell (DELL) is leading S&P gainers as Wall Street praised its Analyst Day guidance and AI commentary.
KeyBanc Capital Markets analyst Brandon Nispel said he left the event “feeling more positive” about Dell’s ability to drive AI-related growth. Morgan Stanley analyst Erik Woodring said the new long-term revenue growth targets were better than expected and “reflect a robust AI server outlook.”
In other news of note, user traffic for Google’s (GOOG)(GOOGL) AI assistant Gemini surged in September thanks to its new image generation tools, while OpenAI’s (OPENAI) ChatGPT also notched strong gains.
BofA analysts said, “viral popularity of Google’s Nano Banana image generation model gave Gemini a boost in adoption, with the app briefly reaching the No. 1 spot on major app stores.”
Gemini’s global web traffic jumped 54% month over month; ChatGPT rose 4%. In the U.S., Gemini climbed 37%, ChatGPT 16%.
Sensor Tower data shows mobile use exploding too: Gemini +8 million daily users, ChatGPT +15 million, Perplexity +1 million, and xAI’s (X.AI) Grok +1.8 million.
And in the Wall Street Research Corner, J.P. Morgan has identified its top short ideas from among its top-ranked analysts, surfacing six names to bet against in the consumer sector.
Among the Underweight names are:
Southwest (LUV), “an airline in the early innings of a transformative shift away from its core longstanding brand” with ambitious guidance and high valuation.
Krispy Kreme (DNUT), with an “overburdened balance sheet” and “limited EBITDA growth visibility.”
And Shake Shack (SHAK), with high menu prices, a “broadening away from top-tier ingredient suppliers.”
Check out the list here.
