Skip to content

Are EV stocks about to replace semiconductors?

Are EV stocks about to replace semiconductors?
Ana Zirojevic

As Nvidia (NASDAQ: NVDA) stock started to consolidate, signaling that the semiconductor behemoth might have reached its zenith and leading other stocks from its sector tumbling, the representative of the electric vehicle (EV) industry, Tesla (NASDAQ: TSLA), has done the opposite.

Specifically, Tesla stocks have started to demonstrate the TTM (‘Trade the Market’) Squeeze indicator, which often signals that an asset’s price is likely to break out soon, in this case, to the upside, as observed by market analytics and trading platform TrendSpider in an X post on September 5.

TSLA stock forecast and price performance analysis. Source: TrendSpider
TSLA stock forecast and price performance analysis. Source: TrendSpider

Indeed, these experts have identified that Tesla shares were TTM squeezing, referring to the indicator that observes the relationship between Bollinger Bands (BB) and Keltner Channels (KC) to possibly notice consolidations and signal when prices will likely break out.

Notably, the red dots along the horizontal axis indicate that TSLA stock is ‘squeezing’ out the last bit of consolidation from a period of sideways price movements and is building up energy to move into a trending market marked by bullish momentum.

As the TrendSpider team implied, if this happens, it could lead the rest of the stocks in the EV market to follow suit, including Nio Inc. (NYSE: NIO), Rivian Automotive (NASDAQ: RIVN), BYD (OTC: BYDDY), and others, thus ending the dominance of semiconductor stocks and ushering the age of EV stocks.

Tesla stock price analysis

In fact, the price of Tesla shares at press time stood at $229.68, which indicates an increase of 4.69% on the day, adding up to the 9.40% advance across the week, as well as gaining 15.64% in the past month, according to the latest data retrieved by Finbold on September 5.

Tesla stock price 1-week chart. Source: Google Finance
Tesla stock price 1-week chart. Source: Google Finance

So, why is Tesla stock going up? Notably, the recent rise could be a reaction to an X post by CEO Elon Musk, where he hinted at the potential use of robots by the EV maker and stated that shareholders should expect a “wild” future involving robots, as the carmaker has been focusing on artificial intelligence (AI).

Meanwhile, Wall Street analysts remain on the fence concerning the future price of Tesla stock, a majority of them rating it as a ‘hold,’ and expecting an average price of $211.46, which would reflect a decrease of 7.93%, according to the most recent TipRanks information.

Wall Street’s Tesla stock predictions. Source: TipRanks
Wall Street’s Tesla stock predictions. Source: TipRanks

Nvidia stock price analysis

At the same time, Nvidia stock’s price amounts to $108.34, recording a 2.49% increase on its daily chart but losing 10.67% on the week, as well as reducing its monthly advances to a mere 8.40%, as the latest price charts indicate.

Nvidia stock price 1-week chart. Source: Google Finance
Nvidia stock price 1-week chart. Source: Google Finance

So, why is Nvidia stock going down today? As it happens, the answer to the question of why did Nvidia stock drop could lie in the recent subpoena from the United States Department of Justice (DoJ) regarding Nvidia’s potential antitrust violations, but it could also indicate a natural rotation.

On the other hand, Wall Street has retained its bullish attitude toward NVDA shares, with the majority of its experts offering Nvidia stock price targets over the past three months giving it a ‘strong buy’ score and placing its average price in the next 12 months at $151.79, up 40.11% from now.

Wall Street’s Nvidia stock price target 2025. Source: TipRanks
Wall Street’s Nvidia stock price target 2025. Source: TipRanks

Conclusion

Ultimately, trends in the stock market could go either way but, at the moment, the winds do seem to be blowing favorably in the direction of certain EV stocks, signaling that the semiconductor stocks might be done advancing, at least for now. However, doing one’s own research is critical when investing significant amounts of money as this, too, can change.

Buy stocks now with eToro – trusted and advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.