10 Stocks That Will Profit From AI

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1. Tesla, Inc. (NASDAQ:TSLA)

EPS next year: 36.83%

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) is a leading innovator in the electric vehicle (EV) and sustainable energy sectors. In January 2025, the company unveiled a redesigned Model Y in China, featuring a full-width light bar for daytime running lights and taillights, an additional touchscreen for rear passengers, and an extended range of 719 km for the long-range version.

Tesla’s stock has experienced volatility in 2025, with shares declining over 40% year-to-date, facing serious competition from Chinese carmaker BYD. In Q4 2024, Tesla, Inc. (NASDAQ:TSLA) has faced some headwinds, with sales declining in the European market by 49%. BYD continued to gain traction, reaching a $107 billion revenue for the year.

Tesla, Inc. (NASDAQ:TSLA) has retaliated with key strategic moves in multiple areas. The company announced the launch of a more affordable $25,000 EV aimed at broadening market accessibility. Plans for the initial robotaxi rollout in select U.S. cities will also strengthen market presence in autonomous vehicle technology. On March 24th, Tesla announced that it will introduce Full Self-Driving (FSD) in China once regulatory approvals for over-the-air software updates are secured. The news sparked a nearly 12% rally in Tesla’s stock.

However, prominent investors such as Cathie Wood of Ark Invest remain optimistic. Wood maintains a five-year price target of $2,600, citing Tesla’s potential growth in new models and autonomous ride-sharing ventures. Analyst sentiment remains relatively strong, with 51% of 57 analysts still recommending a Buy.

Overall, Tesla, Inc. (NASDAQ:TSLA) ranks first among the best AI stocks. While we acknowledge the potential of TSLA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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