Nvidia Becomes Tesla’s Successor as Market Flips From EV to AI

Nvidia Corp.’s rise is fascinating the inventory market and driving the S&P 500 Index to new highs. Nevertheless it additionally raises cautionary reminders of one other investor darling that soared on desires of a technological transformation, solely to tumble again to earth when these hopes turned to disappointment.

That inventory belongs to Tesla Inc., which sparked its personal mania in 2017 as buyers guess that electrical autos have been going to take over the world. Again then, Elon Musk’s firm was a phenomenon because it blew previous established carmakers like Common Motors Co. and Ford Motor Co. in market capitalization to grow to be America’s biggest auto manufacturer. Some analysts have been trying past the trade and calling it “the next Apple Inc.”