Tesla vs. Nvidia: Which One Would You Buy The Dip?

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03-04
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As of the market close, $NVIDIA(NVDA)$ market cap dropped to $2.79 trillion, with a daily loss of $265 billion. Tariffs and chip concerns accelerated Nvidia's sharp decline yesterday.

The impact of Trump's previous tariffs on Nvidia is still fresh in memory.

The US-China trade war in 2018 caused Nvidia’s stock to plunge more than 50% in October. Today, both Trump and Chinese government have announced new tariffs.

However, Phillip Capital believes that

the tariff and retaliation announcements will be less severe compared to 2018, as Nvidia has a smaller revenue exposure to China (~13% in FY25) compared to ~24% in FY19.

Singapore chip shipment investigation: What does a 20-year sentence mean?

Recently, Singapore police and customs carried out joint operations, arresting 9 people, and seizing related documents and electronic records. If convicted, they could face up to 20 years in prison, fines, or both.

There are rumors that the sentencing in Singapore will have little impact on Nvidia’s shipments, as most chips are likely being routed through Japan and South Korea.

However, the fact that only a small number of chips were reportedly seized in Singapore, combined with the arrests, seems to highlight the government's stance. The impact of tariffs on Nvidia's future ecosystem will likely be more significant than the actual impact of the shipments.

According to foreign media reports, the Trump administration is considering introducing a new round of chip control measures, which would prohibit all AI chip exports to China, including Nvidia’s H20/B20 designed specifically for the Chinese market.

Is it time to buy the dip in Nvidia, or look at other AI opportunities?

After consecutive declines, Nvidia's forward P/E has dropped to 25.29, even lower than the 2022 low.

Despite the booming demand for chips, Nvidia recently released optimizations for Deepseek R1, but investors are still concerned about 2026 and whether the gross margin will remain at 75% as margins are compressed during the Blackwell ramp. This situation is expected to ease by 2026.

Tiger analysts believe that

semiconductor and downstream applications are now on the same boat.

Since semiconductor demand depends on downstream applications, for investors betting on AI, why not directly bet on downstream applications?

After all, if there is a massive explosion in applications, the risk-reward for betting on downstream applications should be better than betting on semiconductors.

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You are also welcome to post directly in our topic:

Nvidia YTD Low: Will Chip Concerns Push Stock to $100?

Tesla Down 30% YTD: Will You Buy the Dip at $270?

Wood Bullish on Tesla to $2600: What's Your PT?
Cathie Wood's ARK research team predicts that Tesla's stock price will reach $2600 in the next five years—nearly 10 times its current price. ----------- Some investors eye $300 as key resistance level for this rebound. What’s your take on this? Did you profit from previous dip-buying? What's your price target for Tesla?
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Comments

  • Shyon
    03-08
    Shyon
    Nvidia’s sharp decline highlights ongoing concerns around tariffs and AI chip restrictions, though its exposure to China is lower than in 2018. However, questions remain about margin sustainability during the Blackwell ramp and broader semiconductor demand. While Nvidia continues to dominate AI hardware, investing in downstream applications could offer a different risk-reward balance.

    Tesla, on the other hand, is facing its own challenges, with the stock down 40% YTD amid slowing EV demand and increased competition. While the company remains a leader in the EV space, its near-term growth trajectory is under pressure.

    Both Nvidia and Tesla are high-growth names that have delivered significant returns in the past, but macroeconomic headwinds and industry shifts make careful risk assessment essential. Whether it’s AI or EVs, long-term potential remains, but navigating near-term volatility will be crucial.
    @Tiger_comments @TigerStars @TigerGPT @Daily_Discussion

    • TigerGPT: 

      Based on the news articles from various sources, here are some key points regarding NVIDIA and Tesla:

      NVIDIA (NVDA):  

      NVIDIA announced GTC 2025, an event to showcase AI breakthroughs. The company remains dominant in the AI chip technology sector. Source  

      NVIDIA's stock has experienced a notable decline, with concerns over export controls and the rise of cheaper Chinese AI models impacting investor sentiment. The upcoming GTC 2025 event could be a turning point for the company. Source  

      Despite the recent stock price dip, NVIDIA's financial health remains robust, with strong revenue growth and a significant position in the AI ecosystem. Source  

        Tesla:  

        Tesla is facing challenges, with its stock down 40% YTD due to slowing EV demand and increased competition. The company's sales and profitability have been under pressure due to its relatively old vehicle lineup. Source  

        Worries about what it means to support Tesla in light of Elon Musk's political involvement have been raised, and some potential buyers and owners have started having doubts. Source  

        Considering the information provided, investing decisions should be based on thorough analysis and understanding of the companies' fundamentals, industry trends, and risk factors. It is important to conduct comprehensive research and consider the long-term potential of the companies. It is recommended to consult with a financial advisor or conduct further analysis before making any investment decisions.

        Please note that the information provided is for reference purposes only and does not constitute investment advice. Investment involves risks, and it is essential to carefully consider your financial situation and risk tolerance before making investment decisions.

    • Shyon: 
      Come and join guys @koolgal @rL @icycrystal @b1uesky @1PC @nomadic_m @Barcode @GoodLife99 @Fenger1188
  • Success88
    03-07
    Success88
    Definitely is still Nvidia. AI still have story to tell. Tesla mostly work on electric car and I tell you I recently come to China. I can't see Japanese car and Tesla. Most of it it China made electric car. Quite scary on their electric car industry
  • MHh
    03-07
    MHh
    I would never buy Tesla even with the dip. It is too unpredictable with Elon. Furthermore the industry is too saturated with many good Chinese EV companies like BVD. These companies are more reliable and well supported by the Chinese governments. In addition, with trump’s tariffs, Tesla’s market beyond the US can be restricted if the Chinese government retaliate with tariffs or halt the elon’s factories in China. The Chinese consumer market is also bigger than the US.


    While i am positive about nvidia’s longer term outlook, I normally prefer to buy ETFs as it is less volatile and requires less work on my part to study it well. China has also proven its technical capabilities with deepseek. I believe we will see chips that rival Nvidia in the near future. So, ETFs like IGV and SMH will be my preference instead of Nvidia. I will be looking at Chinese chip companies as an alternative too.
  • 北极篂
    03-04
    北极篂
    SaaS行业的增长潜力毋庸置疑，但目前IGV（iShares扩展技术软件行业ETF）是否是理想的投资标的，仍然需要权衡。SaaS公司普遍估值较高，而在高利率环境下，市场对其盈利能力的要求越来越严格。从IGV的持仓来看，微软、Adobe、Salesforce等龙头公司依然稳健，但中小型SaaS公司受宏观经济影响较大。如果利率下降，SaaS板块可能迎来修复，但短期内整体估值仍需消化。因此，我个人不会盲目入场，而是关注调整后的机会。


    至于英伟达，股价已从高点回落，但AI趋势依旧强劲。100-110美元（拆股后）是较具吸引力的支撑位，但真正的买入时机取决于市场情绪和财报数据。若未来几个季度数据仍然强劲，短期调整可能是不错的布局机会。


    在英伟达和特斯拉之间，我更倾向于英伟达。尽管特斯拉有自动驾驶和机器人业务的长期想象空间，但短期销量压力较大，且电动车市场竞争激烈。相比之下，英伟达的AI生态系统已形成护城河，算力需求仍在增长。因此，若只能二选一，我会优先考虑英伟达，尤其是在回调至合理估值区间时逐步加仓。
  • BenjiFuji
    03-04
    BenjiFuji
    I won’t invest in SaaS ETF as I have other broad exposures already. NVIDIA is definitely a better buy for me and the lower it goes, the better it will be. However do note that it’s richly valued now because of the growth potential. It might chance in a few months to years time. All the best tigers! [Grin]
  • Cadi Poon
    03-04
    Cadi Poon
    儘管芯片需求火爆，英偉達近期發佈了針對Deepseek R1的優化，但投資者仍對2026年和隨着Blackwell增長期間利潤率被壓縮，毛利率是否會保持在75%。這種情況預計到2026年將有所緩解。
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