Is Tesla (TSLA) the Best NASDAQ Stock to Buy According to Billionaires?

The question of whether Tesla (TSLA) is the top NASDAQ stock favored by billionaires hinges on a mix of ownership stakes, financial performance, and strategic bets on the future of technology. While Tesla’s CEO Elon Musk is by far its largest individual shareholder, owning 23% of the company, the broader billionaire community has shown greater enthusiasm for stocks like Broadcom (AVGO) and NVIDIA (NVDA)—companies deeply embedded in the AI revolution. Let’s dissect the data to uncover who’s winning the battle for billionaire favor.

Tesla’s Ownership: Musk’s Stake vs. the Billionaire Crowd

Tesla’s shareholder base is dominated by Musk, who held 715 million shares as of late 2023—nearly three times more than the next-largest shareholder. However, Musk’s net worth has been volatile, dropping from $432 billion to $310 billion in early 2025 due to Tesla’s 32.6% year-to-date stock decline.

Yet, Musk’s outsized ownership contrasts sharply with the billionaire community’s broader preferences. Only 25 billionaire investors held $12.75 billion in Tesla as of Q1 2025, compared to 29 billionaires owning $33.25 billion in NVIDIA and 26 billionaires holding $14.46 billion in Broadcom. This suggests Tesla’s appeal is concentrated in Musk’s vision, while institutional and billionaire investors are favoring AI-driven stocks.

Financial Performance: Tesla’s Struggles vs. AI Giants

Tesla’s Q1 2025 results were bleak: revenue fell 9.4% year-over-year to $19.3 billion, missing estimates by $1.8 billion, while net income dropped 71% to $409 million. The automotive segment suffered a 19.6% revenue decline, driven by lower vehicle deliveries and price cuts.

In contrast, NVIDIA’s dominance in AI infrastructure shone. Its Q4 2024 revenue hit $39.3 billion, a 78% year-over-year surge, fueled by data-center demand. Broadcom also thrived, with 25% revenue growth in Q1 2025, driven by AI semiconductors. Both stocks are backed by hedge funds: NVIDIA by 223, Broadcom by 161—far outpacing Tesla’s institutional support.

Why Billionaires Are Bidding on AI Stocks

The shift toward AI stocks reflects a broader bet on hockey-stick growth in semiconductors and cloud infrastructure. Broadcom’s AI accelerators, for instance, are powering hyperscalers like Google and Meta, while NVIDIA’s GPUs remain the gold standard for training AI models.

Key data points:
- Broadcom’s AI revenue grew 77% in Q1 2025, with a $215 price target from Barclays.
- NVIDIA’s Blackwell GPUs are expected to capture $250 billion in AI data-center spending by 2025.
- Both companies trade at higher valuations (P/E ratios of 50x for Broadcom, 31.5x for NVIDIA) than Tesla’s 15x, reflecting investor confidence in their growth trajectories.

Meanwhile, Tesla faces headwinds:
- Tariffs and trade wars have raised production costs.
- Competitor pressure from BYD and traditional automakers eroding market share.
- Musk’s political controversies, including ties to the U.S. Department of Government Efficiency (DOGE), risk brand perception.

The Hidden Gem: The Billionaire’s AI Darling

The research also hints at an unnamed AI stock trading at <5x earnings, outperforming both Tesla and NVIDIA since early 2025. This “diamond in the rough” is seen as a decade-long growth play, with potential for 10,000% returns. While Tesla’s vision is bold, its execution risks—like delayed Cybertruck production and margin erosion—make it less certain.

Conclusion: Tesla’s Vision vs. the Billionaire’s Playbook

Tesla remains a cultural icon and Musk’s personal passion project, but it is far from the top NASDAQ stock in the eyes of most billionaires. The data paints a clear picture:

1. Ownership concentration: Musk’s stake dwarfs others’, but billionaire investors are diversifying into AI.
2. Financial metrics: Tesla’s declining margins and revenue contrast with NVIDIA’s and Broadcom’s AI-fueled growth.
3. Future bets: AI stocks like AVGO and NVDA are positioned to dominate the next tech era, while Tesla’s path to profitability hinges on Musk’s ability to execute on affordable models and autonomous driving.

For now, the best NASDAQ stock to buy according to billionaires is not Tesla. The crown belongs to AI leaders like NVIDIA and Broadcom—companies with proven revenue streams, dividend discipline, and strategic positioning in the world’s most transformative industry. Tesla, while visionary, is a high-risk, high-reward bet that requires patience—and a tolerance for Musk’s unconventional leadership.

Final note: Before investing, analyze risk tolerance and consider sector diversification.