Should You Forget Tesla and Buy 2 Artificial Intelligence (AI) Stocks Right Now?

Alright, let's dive into the world of AI stocks and see if there are better options out there than Tesla (TSLA). As an investor, you might be wondering if it's time to ditch the electric vehicle (EV) giant and hop on the AI bandwagon. Let's explore two promising AI stocks and see how they stack up against Tesla.

First up, we have Nvidia (NVDA), the graphics processing unit (GPU) powerhouse that's been driving AI innovation for years. Nvidia's GPUs are the backbone of AI applications, and the company's CUDA platform and deep learning libraries make it a go-to choice for AI developers. With a market cap of over $2.8 billion, Nvidia is a heavyweight in the AI sector.

Now, let's talk about Alphabet (GOOGL), the tech behemoth that's been making waves in AI with its Gemini AI model and AI-powered products like Google Assistant and Google Lens. Alphabet's vast data resources and expertise in machine learning give it a competitive edge in AI development. With a market cap of over $2.09 billion, Alphabet is another AI giant to consider.

So, how do these AI stocks compare to Tesla? Well, Tesla's autonomous driving technology is only rated at the Society of Automotive Engineers (SAE) level two, requiring driver intervention. The company aims to begin selling its humanoid robot in 2026, but it's infamous for missing promise dates. Tesla's stock trades at 169 times forward-earnings estimates, reflecting future growth expectations, but analysts estimate the company will grow earnings by an average of 8% annually over the long term.

On the other hand, Nvidia and Alphabet have more attractive valuations and higher estimated earnings growth. Nvidia trades at 39.48 times earnings, with analysts estimating long-term earnings growth of 34.97% annually. Alphabet trades at 39.40 times earnings, with analysts estimating long-term earnings growth of 16.5% annually. Both AI stocks have strong market positions and competitive advantages in their respective sectors, with Nvidia's GPUs and Alphabet's AI capabilities and data resources setting them apart.

But what about the market positions and competitive advantages of these AI stocks compared to Tesla and other AI companies? Nvidia and Alphabet have strong market positions and competitive advantages in their respective sectors. Nvidia's GPUs offer high performance and energy efficiency, making them popular among AI developers and data centers. Alphabet's AI capabilities are demonstrated through its Gemini AI model and the use of AI in various Google products. The company's vast data resources and expertise in machine learning give it a competitive edge in AI development.

Tesla, on the other hand, is evolving beyond electric vehicles (EVs) to become a bonafide AI company. Its plans for an autonomous Robotaxi fleet and its work in humanoid robotics could eventually make it the world's most valuable company. However, Tesla's autonomous driving technology is only rated at SAE level two, requiring driver intervention. The company aims to begin selling its humanoid robot in 2026, but it is infamous for missing promise dates. Tesla's stock trades at 169 times forward-earnings estimates, reflecting future growth expectations, but analysts estimate the company will grow earnings by an average of 8% annually over the long term.

In conclusion, if you're looking to invest in AI stocks, Nvidia and Alphabet are strong contenders with attractive valuations, high estimated earnings growth, and competitive advantages in their respective sectors. While Tesla is making strides in AI, the other AI stocks have established themselves as leaders in their fields, with well-developed AI capabilities and extensive resources. So, should you forget Tesla and buy 2 AI stocks right now? The choice is yours, but these two AI stocks are definitely worth considering.