Dollar Tree, Tesla recall, Nvidia and chip stocks: Trending Tickers

Dollar Tree (DLTR) shares are on the move this morning after Goldman Sachs analysts upgraded the discount store to "Buy." Tesla (TSLA) recalls 55,000 Model Y EVs on issues to its warning lights, set to resolve the issue with an over-the-air fix.

Nvidia (NVDA) and other chipmaker stocks, such as Intel (INTC) and Advanced Micro Devices (AMD), are sliding this morning on the Biden administration's new export restrictions targeting China's ability to purchase new AI chips.

Yahoo Finance Live examines these stocks trending in the morning session and President Biden's tightening China policies.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

BRAD SMITH: We're about 30 minutes into the trading day. Let's take a look at how things are shaping up here. Stocks are lower this morning as Treasury yields spike following another hot retail sales report. Consumers continue to show resilience in September with sales rising 7/10% on a monthly basis.

SEANA SMITH: And taking a look at some of the individual movers, Dollar Tree rising this morning after Goldman Sachs points to a potential 20% upside in the stock. Analysts upgrading the discount store to buy from neutral. Also boosting their price target to $137 a share, saying that they see, quote, "strong earnings growth potential driven by gains in market share as sticky inflation reels in low and middle income consumers."

BRAD SMITH: And we're also watching shares of Tesla. Tesla stock dipping today on news that the EV maker is recalling nearly 55,000 Model Y vehicles according to the National Highway Transportation Safety Administration. Models manufactured between 2021 and 2023 have an issue possibly with the warning lights that detects low brake fluid not coming on when necessary. Tesla is going to fix this like most of their other issues with an over-the-air software update.

SEANA SMITH: We also have our eyes on NVIDIA and also some of its other peers right now. Shares under pressure following the Biden administration's move to tighten restrictions on China's ability to buy advanced semiconductors. We're looking at losses of just about 6% here about 30 minutes into the trading day.

We talk about some of the pressure that we're seeing play out in NVIDIA's stock right now, a lot of that obviously tied to these fears that we have seen that we have talked about now for quite some time about the crackdown from the White House. This is going to target NVIDIA's A800 and H800 chips. That's according to a senior US official right now saying that the firm has had created for export to China after the Biden administration introduced its initial restrictions last October.

So these curbs are going to include updated rules released today. And they also aim to prevent China from accessing much of that new cutting edge technology that the military uses. So a further crackdown and also more of a continuation of some of that hard line rhetoric that we've heard from the White House.

BRAD SMITH: And so as we think about why the White House has initiated much of this and some of this is a carryover in terms of not just the historical kind of trade war with China, and now that has focused towards chips. We've seen this go from everything all the way from TikTok to different commodities and now even into where the chip and intellectual property specifically as it's looked to power the future of anything that is related to productivity, especially as you think about artificial intelligence.

The chip companies have been at the center of that over the course of this year. NVIDIA have been one of these stalwarts of making sure that not only for the demand side of the equation, but also for the delivery and supply side, they are one of the more leaned on names, not just by investors, but many of the companies who are looking at their DGX Cloud and seeing an opportunity there. And so they have been one of the core points of focus here.

But even as you think about where the White House continues geopolitically to enact strategy as part of the broader trade situation and making sure that there is protection of intellectual property that then doesn't damage some of the IP that is developed, research and development takes place here in the US as well, that's where that can still have an overhang on some of these US-based companies, even despite the CHIPS Act that has moved forward and billions of dollars earmarked for bringing online of factories, bringing online of new research and development and deploying that across so many different products, whether it be automobiles or whether it be, you know, a calculator that you might have in your back pocket at some point.

SEANA SMITH: And it's also important to point out that we're looking at shares of Intel off just about 3 and 1/2%. AMD also off just over 3% on the heels of this news. And of course, this also begs the question of what the potential reaction could be here from China because we know Chinese officials have criticized some of these controls that have been put in place by the Biden administration, by the US as violating international trade rules.

We know that they did ban sales of some chips made by US-based Micron Technology just several months ago restricting some of the exports there. We saw the impact there on that stock. So again, when we talk about the escalation of this chip war here between the US and China, we're seeing some pressure from NVIDIA, Intel, AMD, the leaders within that space.