There was once a Doonesbury strip, back when Ross Perot was running for president, that featured unlikely people performing house calls for certain jobs. A local firefighter, for example, turned out to tune a lawn mower. For ARKK stock leader Cathie Wood, however, it was a remarkable case of life imitating art as she picked electric vehicle stock Tesla (NASDAQ:TSLA) to be the big beneficiary of the AI boom rather than chipmaker Nvidia (NASDAQ:NVDA), who recently showed itself to be a major player therein.
Wood recently declared Tesla to be the “most obvious AI play,” even as Nvidia rolled out a recent flood of news about its developments in the field. Developments sufficient, in fact, to send several AI stocks rocketing upward in Tuesday afternoon trading. Wood herself offered a tweet in which she noted that “Nvidia saw the AI future coming before most other chip companies” but that Nvidia was also “…priced ahead of the curve.”
Instead, Wood turned to Tesla for the title of big winner of the AI circuit. Not so much because Tesla was working on AI or anything like that, but rather because Tesla would be able to make the most of AI breakthroughs. This was especially true, Wood noted, when considering the “…$8 trillion to $10 trillion (in) revenue in autonomous mobility by 2030.” Then, as though to ameliorate the fact that ARKK missed out on Nvidia’s upward ride, Wood also noted that “…ARK sees dozens of AI winners.”
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 32 Buy ratings and four Holds. Meanwhile, Nvidia investors can expect 8.51% upside potential thanks to Nvidia’s average price target of $434.76.
