September 20, 2025

finance  
Tesla AI, Google Chrome Lead, Nvidia $6T Cap

The artificial intelligence sector continues to see significant investment and development across various industries. Morgan Stanley maintains an "Overweight" rating for Tesla, seeing substantial potential in its physical AI advancements, including robotics and autonomous driving, with a $350 price target. In the browser space, Citizens believes Google has secured an early lead in the AI browser war by integrating AI into Chrome at multiple levels, leading them to raise their stock price target for Google. Nvidia's market cap could reach $6 trillion by next year, according to I/O Fund CEO Beth Kindig, who points to massive AI hyperscaler investments from cloud providers like Amazon, Microsoft, and Alphabet fueling demand for Nvidia's data center platforms. Ciena's stock has surged over 100% in six months due to high demand for its high-speed networking components in AI data centers, with Meta Platforms being a key customer. Technology solutions provider Mustek is expanding into AI by acquiring a 51% stake in Business AI, which is developing a B2B marketplace for AI vendors and solutions. Humanoid robot developer Figure AI has partnered with Brookfield Corp. for data collection and infrastructure to scale its AI models, with Brookfield also investing over $1 billion in Figure AI's $39 billion valuation. Rolls-Royce is positioned as a stable AI nuclear energy investment, developing small modular reactors to meet the energy demands of AI expansion, securing deals with governments in the UK and Czech Republic. Meanwhile, CoreWeave, despite its AI focus, faces risks with a significant valuation drop and substantial losses, raising concerns about its planned acquisition of Core Scientific. Robo.ai Inc. is also entering the AI market through a partnership with Arkreen via aitos.io to connect AI and blockchain infrastructure for an intelligent machine asset network. Bank of America strategists suggest the AI stock rally has further to run but advise caution, comparing current market conditions to historical bubbles.

Key Takeaways

  • Morgan Stanley reiterates an "Overweight" rating and $350 price target for Tesla, emphasizing its potential in physical AI through robotics and autonomous driving.
  • Google is seen as having won the early AI browser war with its integration of AI into Chrome, prompting Citizens to raise its stock price target.
  • Nvidia's market cap could reach $6 trillion by the end of next year, driven by AI hyperscaler investments from Amazon, Microsoft, and Alphabet.
  • Ciena's stock has risen 112% in six months due to strong demand for its AI data center networking solutions, with Meta Platforms as a major client.
  • Mustek is entering the AI market by acquiring a 51% stake in Business AI, a new venture focused on a B2B marketplace for AI vendors.
  • Figure AI secured over $1 billion in Series C funding at a $39 billion valuation, partnering with Brookfield Corp. to build infrastructure for its humanoid robot AI models.
  • Rolls-Royce is developing small modular nuclear reactors to power AI expansion, securing government deals in the UK and Czech Republic.
  • CoreWeave faces risks, including significant losses and a declining stock price, impacting its planned acquisition of Core Scientific.
  • Robo.ai Inc. is partnering with Arkreen through aitos.io to integrate AI and blockchain for an intelligent machine asset network.
  • Bank of America strategists believe the AI stock rally may continue but caution that current market conditions resemble historical bubbles.

Morgan Stanley backs Tesla stock for AI growth

Morgan Stanley has reiterated its "Overweight" rating for Tesla (TSLA) stock, highlighting its significant potential in the emerging field of physical AI. The firm believes Tesla's market cap is smaller than other major tech companies but its addressable markets, especially in physical AI, are larger. Morgan Stanley maintains a $350 price target for Tesla, emphasizing its advancements in robotics and autonomous driving as key drivers for future growth in the AI sector.

Morgan Stanley sees big AI opportunity for Tesla

Morgan Stanley is sticking with its "Overweight" rating and $350 price target for Tesla (TSLA), citing the company's significant potential in physical AI. Analyst Adam Jonas believes Tesla's market opportunity in physical AI is underestimated, pointing to its progress in robotics and autonomous driving. Technologies like the Optimus robot and Full Self-Driving software are seen as key to capturing a large share of the growing physical AI market. This conviction underscores the increasing importance of AI in physical systems.

Google Chrome wins AI browser war early, says Citizens

Research firm Citizens believes Google has already won the AI browser war. The firm reiterated its bullish rating on Google (GOOG) and raised its stock price target. This comes after Google announced it has integrated artificial intelligence into Chrome at multiple levels. Citizens sees this move as a significant advantage for Google in the evolving browser market.

Nvidia could hit $6 trillion valuation next year, analyst predicts

Beth Kindig, CEO of I/O Fund, predicts Nvidia could reach a $6 trillion market cap by the end of next year, suggesting significant upside. She believes Wall Street is underestimating Nvidia's data center revenue growth, driven by massive AI hyperscaler investments. Kindig's analysis points to Nvidia's Blackwell and Blackwell Ultra platforms as key to meeting this demand. The growth is fueled by cloud providers like Amazon, Microsoft, and Alphabet expanding their compute power for AI workloads.

Robo.ai stock rises on AI and blockchain partnership

Robo.ai Inc. shares are trading higher after the company announced a partnership with Arkreen through aitos.io. This collaboration aims to connect artificial intelligence and blockchain infrastructure to build an intelligent machine asset network. The deal combines AI-powered robotics with DePIN blockchain systems, marking a significant step in linking the machine economy with Web3 technologies. Financial terms were not disclosed, but the partnership is expected to boost market competitiveness and their profile in the Web3 community.

CoreWeave stock faces risks despite AI hype

CoreWeave, a popular AI stock, has seen its valuation drop significantly, raising concerns about its planned acquisition of Core Scientific. High short interest in the stock indicates investor worries about its growth prospects and poor financial performance. The company incurred $1.1 billion in losses over the last 12 months despite generating $3.5 billion in sales. If the Core Scientific deal falls through due to the declining stock price, it could further impact investor confidence.

Ciena stock surges on AI data center demand

Ciena's stock has jumped 112% in six months, driven by the booming demand for high-speed networking in AI data centers. The company's fiscal Q3 revenue increased 29%, with earnings nearly doubling. Ciena provides fiber optic components essential for AI data centers, enabling high-speed data transmission. Major cloud providers like Meta Platforms are significant customers, and Ciena sees its addressable market expanding with new 'neo-scalers' and AI compute specialists.

Mustek enters AI market with Business AI stake

Technology solutions provider Mustek has acquired a 51% stake in the newly formed Business AI (Pty) Ltd, marking its expansion into the artificial intelligence sector. Business AI is developing a B2B marketplace to connect businesses with AI vendors and solutions. This move comes as Mustek reported mixed financial results, with revenue down but profitability improved. Mustek aims to capitalize on the growing enterprise focus on AI for analytics, automation, and cybersecurity.

Figure AI partners with Brookfield for humanoid robot training data

Humanoid robot developer Figure AI has partnered with Brookfield Corp. to create a large dataset for training its Helix vision-language-action model. Brookfield will help build infrastructure for scaling the model and deploy humanoid robots in commercial settings. As part of the partnership, Brookfield also invested in Figure AI's Series C fundraising, which totaled over $1 billion, valuing the company at $39 billion. This collaboration aims to gather real-world data for general-purpose humanoid robots.

Rolls-Royce is the AI nuclear energy stock to buy

While Oklo Inc. stock has surged, Rolls-Royce (RYCEY) is presented as a more stable AI nuclear energy investment. The company is developing small modular nuclear reactors (SMRs) using its expertise in nuclear propulsion. AI hyperscalers and governments are driving demand for nuclear energy to power AI expansion. Rolls-Royce has secured deals with the British government and is a preferred supplier for SMR construction in the Czech Republic, showing strong financial growth and potential.

BofA sees AI stock rally continuing, suggests bubble plays

Bank of America strategists believe the AI-driven rally in big tech stocks has more room to grow, comparing it to historical market bubbles. They note that the 'Mag Seven' stocks have risen significantly and suggest strategies for investors to play a potential bubble. These include investing in cheap, distressed value stocks in markets like Brazil, or shorting bonds of frothy companies. The analysis suggests that while a bubble may form, current valuations are not yet at peak levels.

Sources

AI Tesla Morgan Stanley Physical AI Robotics Autonomous Driving Google Chrome Google Nvidia Market Cap Data Center AI Hyperscalers Blackwell Platform Robo.ai Blockchain Web3 CoreWeave AI Stock Core Scientific Ciena Networking Mustek Business AI Figure AI Humanoid Robot Brookfield Rolls-Royce Nuclear Energy Small Modular Reactors Bank of America AI Rally Big Tech Stocks