The Nasdaq Composite has dropped 8% from its record high, sparking concerns about the impact of the trade war on the economy. However, analysts see this downturn as an opportunity to buy shares of Tesla (TSLA) and The Trade Desk (TTD).
Tesla’s share price is down due to disappointing fourth-quarter results, but Dan Ives at Wedbush believes the company will benefit from ties with the Trump administration, which could accelerate regulatory approval for its autonomous driving technology. Ives expects demand to improve, driven by $1 trillion in potential revenue from autonomous driving.
The Trade Desk’s share price also fell after a disappointing fourth-quarter report, but CEO Jeff Green attributes the shortfall to “small execution missteps” rather than deeper issues. Analysts see opportunities for growth in connective TV and retail advertising, where eMarketer estimates spending will increase at 13% and 17%, respectively, through 2028.
Wall Street anticipates Tesla’s adjusted earnings will increase 16% in 2025, while The Trade Desk is expected to grow 8%. These projections suggest that the companies’ valuations might be due for a correction. As investors consider these opportunities, it’s essential to remember that both stocks carry significant risks and uncertainties.
Investors should approach Tesla with caution, as its future success depends on disrupting the mobility and labor markets with artificial intelligence products. The Trade Desk, on the other hand, has a strong presence in connective TV and retail advertising and is well-positioned for growth. With patience and a long-term perspective, investors can consider buying shares of these companies at current prices.
Source: https://www.fool.com/investing/2025/03/07/2-ai-stocks-buy-before-soar-136-wall-street-tesla