Artificial intelligence (AI) is the new megatrend on Wall Street with a potential economic impact of $15.7 trillion by 2030, according to PwC. Analysts are predicting that two high-flying AI stocks, Tesla and Nvidia, could see trillion-dollar valuations. Tesla, with its AI-driven FSD software and chips, received the loftiest price target from Ark Investment’s Cathie Wood, who believes the carmaker’s valuation could reach $6.34 trillion by 2027. However, Tesla’s pricing strategy is showing weakness and its bottom line is dependent on selling EVs, leaving room for competition catch up. Nvidia’s AI-driven A100 and H100 GPUs being used in data centers could help the company achieve the nearly $1.5 trillion valuation predicted by Rosenblatt’s Hans Mosesmann. Still, analysts have doubts that actual demand for AI investments will live up to Wall Street expectations.
Tesla is a California-based electric vehicle and clean energy company founded by billionaire tech entrepreneur Elon Musk. It is the world’s most valuable automaker and has been a pioneering force in the production of commercial EVs. Its AI ties come from its use of Level 2 full self-driving (FSD) software and AI-driven FSD chips used for partly autonomous driving.
Cathie Wood is the founder and CEO of Ark Investment Management, a NY-based investment management firm focused on disruptive innovation. She has been a vocal advocate for companies like Tesla, Zoom, and Square, and has made bold predictions on their future valuations. Her predictions are often a subject of debate on Wall Street and the topic of discussion in financial news media.
