Cathie Wood’s Top 12 AI Stock Picks in 2025

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1. Tesla, Inc. (NASDAQ:TSLA)

ARK Investment Management’s Stake Value: $1.33 Billion

Number of Hedge Funds Holding Stakes: 126

Tesla, Inc. (NASDAQ:TSLA) is an auto manufacturer that designs, develops, and sells electric vehicles, energy generation and storage systems. The company is increasingly leveraging artificial intelligence technology to enhance its Autopilot and Full Self Driving capabilities for its self-driving cars. It also employs advanced neural networks to analyze sensor data and make real-time car driving decisions. Likewise, it is Cathie Wood’s biggest holding, offering exposure to the integration of AI in electric autonomous vehicles.

Tesla, Inc. (NASDAQ:TSLA) recorded its first decline in annual deliveries by 1.1% to 1.79 million cars in 2024. Nevertheless, revenue was up 2% year-over-year to $27.5 billion as non-GAAP earnings increased 3% to $0.73 a share. Despite the decline in annual deliveries, Wedbush analyst Dan Ives believes Tesla is well-positioned to benefit from hastened regulatory approval of its AI-powered autonomous driving technology. The analyst believes the company is staring at a $1 trillion opportunity on autonomous driving.

Additionally, Tesla, Inc. (NASDAQ:TSLA) is poised to launch a robotaxi, or automated ride-sharing service, in Austin, affirming its AI developments. It may also begin selling Optimus to other businesses as early as the second half of 2026, as it intends to manufacture 10,000 Optimus humanoid robots for internal usage in 2025.

While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 the 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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