Stock Markets Today: Tesla, Super Micro, AMD

Today’s stock markets movers include Tesla, Super Micro, and AMD, with each seeing notable shifts. Tesla is reacting to developments in its autonomous vehicle plans, Super Micro faces changes in demand for its server products, and AMD experiences movement amid competition in the semiconductor industry.

Tesla

Tesla shares dropped 1% ahead of its much-anticipated Robotaxi Day set for Thursday evening. The electric vehicle company is expected to outline the current status of its self-driving technology and offer a timeline for launching its autonomous taxi service in the coming years. Wedbush analysts described Robotaxi Day as a "pivotal and historic moment for [CEO Elon] Musk and Tesla," signaling a new phase of growth centered around autonomous driving, Full Self-Driving (FSD) technology, and AI advancements.

Tesla delivered 462,890 vehicles in Q3 2024, just shy of Wall Street's projection of 463,000 units. This small miss has affected the stock, despite a 6% year-over-year growth in deliveries. Achieving Tesla's original goal of 2 million deliveries for 2024 now appears challenging, placing additional pressure on the company's Q4 performance to close the gap.

Investors are also paying close attention to Tesla’s margins, which have been squeezed due to price reductions aimed at stimulating demand amidst growing competition in the electric vehicle market. Furthermore, the upcoming Robotaxi event, expected to showcase Tesla's advancements in autonomous driving, could be crucial for shaping the company’s long-term growth trajectory.

Super Micro

Super Micro Computer (SMCI) saw its stock dip 1.7% to $46.47, following a downward revision in earnings estimates by analysts at Barclays. In a recent research note, Barclays reduced its fiscal 2025 earnings projection for the server manufacturer from $3.50 per share to $3.09 per share. The revision stems from expectations that the company’s gross margins may fall short of market expectations. Despite the lowered earnings forecast, Barclays maintained its "Equal Weight" rating on the stock, along with a price target of $42.

This reflects a cautious but balanced view on the company’s outlook, as it navigates potential margin pressures amid an increasingly competitive landscape in the server market. The company has been contending with pricing challenges and supply chain disruptions, which have impacted profitability, prompting analysts to remain conservative in their assessment of near-term performance. Investors are now looking for updates on how Super Micro plans to address these concerns to sustain long-term growth.

AMD

Advanced Micro Devices was down 4% even after CEO Lisa Su said at the company’s Advancing AI event in San Francisco that demand for artificial-intelligence had exceeded the company’s expectations over the past year. Su said that the chip maker had the “best portfolio in the industry to address end-to-end AI.” The company also launched its latest data center AI chip.

AMD's stock has been performing strongly in 2024, with a notable rally in early October. As of October 8, AMD shares were trading around $170.85, reflecting a 24% gain year-to-date. This growth is driven by its leadership in artificial intelligence (AI) and data center technologies. The company is expected to benefit further from its upcoming AI-focused event, where CEO Lisa Su will outline new AI infrastructure products. Analysts are optimistic about this development, with some predicting it could further boost the stock's trajectory​

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