Shares in Tesla (TSLA) stock climbed on Thursday shortly after Nvidia (NVDA) released a better-than-expected quarterly earnings report. Many market watchers have followed Nvidia’s earnings not only with bullish takes on the state of the stock, but on the AI trade and markets broadly. Tesla has long been associated with the AI market due to its autonomous vehicle capabilities and Robotaxi program, which utilizes Nvidia AI chips.

Nvidia CEO Jensen Huang told analysts on the earnings call that a “new wave is rising” in agentic AI systems. Huang highlighted “AI chauffeurs like Tesla FSD and Waymo” as he discussed the new AI frontier and put Tesla and Musk’s xAI in his list of “fastest-growing companies in the world today” that are “pioneering agentic AI.”

Tesla (TSLA) Bulls Wake Up This Week

Earlier this week, investment bank Stifel raised its forecast for Tesla (TSLA) stock. Analyst Stephen Gengaro raised his Tesla price target to $508 from $483, while maintaining his Buy rating on the stock. “We believe that Tesla’s AI-based Full Self-Driving (FSD) technology and Robotaxi initiatives are critical to the story and a large part of our valuation,” Gengaro wrote in an investor’s note to clients this week. The analyst is a firm believer in Tesla’s strength in full self-driving (FSD) and its robotaxi service.

Also Read: Nvidia (NVDA) Climbs on Q3 Earnings Beat: BofA Hikes Forecast

In addition, Gengaro is also bullish on Tesla’s robotaxi rollout, the paid service the company is offering in Austin and the San Francisco Bay Area.”Tesla management noted plans to expand to roughly eight to 10 metropolitan areas by year-end 2025,” Gengaro said about executive comments during the Q3 earnings call.

Nvidia’s solid earnings report paints a bullish picture for AI-based stocks like Tesla TSLA heading into 2026. Musk and Tesla are going full steam ahead on emphasizing Tesla as an AI and robotics company. On Saturday, the Tesla CEO posted to X that he had “just wrapped” the upcoming AI5 chip design review. Musk added that the AI5 chips “will not be available in sufficient volume to switch over Tesla production lines until mid-2027.” Should that timeline be accelerated in some sort of partnership with Nvidia, Tesla shares could see a further hike.