Best AI Stocks To Buy Today

TLDR

Table of Contents

Nvidia dominates the AI data center chip market with a $4.4 trillion market cap and 63% year-over-year net profit growth
Alphabet’s Google Gemini AI model drives growth across consumer and enterprise services with $115 billion in annual net profit
Tesla is developing proprietary AI chips (AI5 and AI6) to power its autonomous driving and robotics ambitions
Wedbush analyst Dan Ives believes Tesla is the most underappreciated large-cap AI stock despite its $1.5 trillion valuation
Tesla’s Full Self-Driving software and Optimus humanoid robot represent two potential trillion-dollar business opportunities

Nvidia continues to hold its position as the world’s most valuable company with a market cap of $4.4 trillion. The company’s dominance in the data center chip market has driven net profit growth of 63% year over year to reach $86 billion.

NVIDIA Corporation, NVDA

The chipmaker supplies AI processing units to all major cloud service providers. Wall Street analysts forecast 23% annual profit growth over the next five years for the company.

Nvidia recently announced a partnership with Oracle to build a high-performance computing cluster. The system will deliver up to 16 zettaflops of peak AI compute performance.

The company faces competition from Broadcom and Advanced Micro Devices. However, all three chip manufacturers are reporting strong growth as demand for AI infrastructure expands.

Nvidia estimates data center spending will reach up to $4 trillion by 2030. Data center chips are expected to account for roughly half of this spending.

The stock trades at a lower forward price-to-earnings multiple than Walmart. This suggests the shares may be undervalued relative to the company’s growth prospects.

Google’s AI Integration Drives Revenue Growth

Alphabet operates Google services used by over 2 billion people daily including Search, Gmail, Maps, and YouTube. The company generated $115 billion in net profit on $371 billion of revenue over the past year.

Advertising revenue comprises 74% of Alphabet’s business. The company’s Google Gemini AI model powers features across both consumer and enterprise products.

AI Overviews in Google Search led to increased usage and strong year-over-year revenue growth last quarter. Google Cloud offers both proprietary Tensor Processing Units and Nvidia chips to customers.

Alphabet has invested billions in data centers and AI infrastructure over several years. Analysts expect the company’s earnings to grow at a 15% annual rate.

Alphabet Inc., GOOGL

The stock trades at a forward price-to-earnings ratio of 24. Revenue and earnings are growing at double-digit rates.

Tesla’s AI Transformation Beyond Electric Vehicles

Wedbush Securities analyst Dan Ives calls Tesla the most underappreciated large-cap AI stock. The company is developing proprietary AI chips called AI5 and AI6 for its autonomous systems.

Tesla’s Full Self-Driving software uses neural networks trained on billions of miles of real-world driving data. The company plans to launch a robotaxi network using autonomous Tesla vehicles.

Elon Musk envisions the robotaxi service disrupting ride-sharing and delivery industries. The company could activate millions of vehicles equipped with autonomous technology.

Tesla’s Optimus humanoid robot has demonstrated coordinated motion and object manipulation. Musk suggests Optimus could eventually represent 80% of Tesla’s long-term value.

The robot uses the same vision-based neural networks that guide Tesla’s self-driving cars. Competitors include Boston Dynamics and Figure AI in the humanoid robotics space.

Tesla trades at a forward price-to-earnings ratio near 256 with a $1.5 trillion market cap. The robotaxi business currently generates minimal revenue while Optimus remains in development.

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