Tesla (TSLA) Seen as ‘Physical AI’ Leader as Mizuho Lifts Price Target

Tesla, Inc. (NASDAQ:TSLA) is 1 of the 10 AI Stocks Making Waves connected Wall Street.  On January 29, Mizuho expert Vijay Rakesh raised the terms people connected the banal to $540.00 (from $530.00) portion maintaining an “Outperform” rating. The steadfast sees Tesla arsenic a person successful carnal AI contempt near-term EV request headwinds.

Mizuho’s standing follows Tesla’s fourth-quarter earnings, wherever it reported revenues of $25 cardinal and net per stock of $0.50, successful enactment with statement estimates of $25.1 cardinal successful gross and $0.45 EPS.

The steadfast noted however Tesla is dilatory pivoting to AI, Software, and Robotaxi arsenic maturation of EV request slows successful 2026.

“Slow EV Demand successful 2026E (we estimation EV income up ~5% y/y) arsenic TSLA Focuses connected Gradually Pivoting to AI, Software (investing $2B successful xAI +ve NVDA, DELL), and Robotaxi.”

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The company’s automotive gross borderline excluding credits improved to 17.9%, up 250 ground points quarter-over-quarter. This improvement, the steadfast noted, was driven by amended premix and pricing.

Mizuho further added however Tesla has reiterated its timeline for launching its cybercab successful the archetypal fractional of 2026, portion noting that Full Self-Driving (FSD) v14 revenues grew quarter-over-quarter.

Looking ahead, the institution guided fiscal 2026 capex to $20 billion, up from astir $9 cardinal successful fiscal 2025. This is arsenic it plans to treble GPU capableness successful the archetypal fractional of 2026, grow factories, and people AI5 accumulation successful 2027.

Overall, the steadfast sees Tesla arsenic well-positioned starring carnal AI.

“4) AI concern – F26E Capex guided $20B (vs. F25 ~$9B) Doubling GPU capableness successful 1H26E, expanding six factories, and AI5 prod. successful 2027E. Maintain Outperform, Adjust Ests and PT to $540 (prior $530) arsenic we spot TSLA well-positioned starring carnal AI with Cybercab/FSD traction, humanoid longer term, offset by near-term request headwinds.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and cleanable vigor institution that leverages precocious artificial quality successful its autonomous driving exertion and robotics initiatives.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.