Two Tech Giants, Two Diverging Moves
Monday's session highlighted divergent fortunes for Tesla (TSLA) and Micron Technology (MU). Tesla is under pressure following disappointing delivery figures and a bearish call from JPMorgan, while Micron is advancing as investors grow more optimistic about geopolitical developments involving Iran and the Strait of Hormuz.
Tesla Pressured by Deliveries, JPMorgan Stance
Tesla (TSLA) shares fell around 2% after delivering 358,000 vehicles in the first quarter, below the Bloomberg consensus estimate of 372,000 and falling 7% short of JPMorgan's own forecast of 385,000. Energy storage installations reached 8.8 gigawatt-hours, down 15% year-over-year—the first decline since Q2 2022.
JPMorgan reiterated its 'Underweight' rating and $145 price target, noting about 60% downside based on current valuation. The bank also cut its Q1 EPS estimate to $0.30 from $0.43, below the $0.38 consensus, and lowered its full-year outlook to $1.80 per share from $2.00. These combined factors have led to today's notable drop in TSLA shares as institutional skepticism compounds weaker operational data.
Micron Gains on Ceasefire Hopes
Micron (MU) is up 3.4% as of mid-afternoon, outperforming the broader market's 0.3% rise. The chipmaker is benefitting from investor hopes that the war with Iran could de-escalate. Over the weekend, President Trump threatened strikes unless a deal to reopen the Strait of Hormuz was reached, but subsequently announced negotiations were active. The prospect of resolving supply chain risks in the region is giving Micron and other tech stocks a meaningful lift.
Given the headline-driven volatility, further moves in Micron are likely to hinge on whether a ceasefire and reopening of the Strait actually materialize. Conversely, escalation could spark renewed selling across the sector.
Stocks365 Take
Tesla faces a tough near-term setup with a delivery miss and a prominent Wall Street firm reiterating bearish views. Any relief rally could be vulnerable unless new positive operational data emerges or broader sentiment shifts. Our risk signals remain elevated for crowded momentum stocks exposed to further analyst cuts.
Micron's move shows the ongoing sensitivity of semiconductor names to macro headlines—in this case, Middle East de-escalation hopes. Continue to monitor negotiations over the Strait of Hormuz. Momentum plays in the chip sector remain viable but require disciplined risk management given high geopolitical uncertainty.
