The Stock Market Just FLIPPED - Prepare for More GAINS in Tesla and AI
Overall Thesis
A double sentiment shift is driving a year-end rally: CPI came in at 2.7% versus over 3% expected, freeing the Fed to cut rates more aggressively, while Micron's blowout earnings revived the AI trade. Jo sees high probability of another 3-5% NASDAQ rally into year-end and potentially January, with Tesla plausibly reaching 520 by year-end given its beta of 2.
Narratives
Tesla hit an all-time high of 490 on December 17 before a two-day roller coaster on Oracle fears. Jo sees Tesla reaching his 520 price target by end of year if the NASDAQ rallies another 5% given Tesla's beta of 2, with more robotaxi catalysts likely in the next four weeks.
Key Arguments
- Tesla hit all-time high of 490 on December 17, 2025
- Tesla has a beta of 2 versus NASDAQ
- Jo predicts more robotaxi catalysts in the next four weeks
- If NASDAQ rallies another 5%, Tesla could hit 520 with no additional catalysts
Predictions (1)
Micron reported blowout earnings with 13 billion dollars quarterly revenue, 68% gross margins, 3.9 billion dollars adjusted free cash flow, and guided next quarter revenue to 18 billion dollars. HBM memory is sold out for 2026 and US-based production gives Micron a strategic onshoring advantage. Stock up 11.58% on the news.
Key Arguments
- Q revenue of 13 billion dollars, next quarter guide 18 billion dollars
- Gross margins around 68%
- Adjusted free cash flow of 3.9 billion dollars for the quarter
- HBM memory sold out for 2026
- US-based production advantage in Trump onshoring era