We recently published a list of 10 AI News Making Waves on Wall Street. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other AI news making waves on Wall Street.
OpenAI has previously been dependent on Nvidia for its chip supply, but it looks like it may not be for long. As reported by Reuters, the artificial intelligence startup is all set to develop its first generation of in-house artificial intelligence silicon.
According to sources, the startup is finalizing the design for its first in-house chip in the next few months. It then plans to send it for fabrication at Taiwan Semiconductor Manufacturing Co in a “taping out” process.
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This training-focused chip will be used as a strategic tool to strengthen OpenAI’s negotiating leverage with other chip suppliers. If all goes smoothly, the company will be able to mass-produce its first in-house AI chip and potentially test an alternative later this year.
Meanwhile, big tech companies have struggled to produce satisfactory chips over the years. Nevertheless, DeepSeek has raised questions about whether fewer chips will be needed in developing powerful models in the future.
Google DeepMind boss Demis Hassabis has recently dismissed DeepSeek’s claims that its popular chatbot and AI model is using far less money than US rivals.
DeepSeek “seems to have only reported the cost of the final training round, which is a fraction of the total cost.”
– Hassabis told Bloomberg Television
He also stated that DeepSeek’s emergence doesn’t upend the economics of AI development.
“We don’t see any new silver bullet technologies. DeepSeek is not an outlier on the efficiency curve.”
-Hassabis said at the Artificial Intelligence Action Summit.
The Chinese startup has reportedly spent around $5.6 million on computing costs to train its models. OpenAI and Microsoft are currently investigating these claims, searching if anyone tied to DeepSeek has obtained data from OpenAI through a process known as distillation.
According to Hassabis, DeepSeek seems “to have relied on some Western models to distill from”.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On February 10, Stifel Nicolaus analyst Stephen Gengaro maintained a “Buy” rating on the stock and decreased the price target to $474.00 from $492.00. Despite mixed fourth-quarter results and external uncertainties, Tesla’s future potential, particularly its strategic initiatives and innovations, has led the firm to maintain its buy rating on the stock. In particular, promising signs such as cost efficiency are a positive indicator of its future profitability. Moreover, the company plans on introducing a lower-priced vehicle in the first half of 2025 which could potentially expand its market reach. The expected launch of unsupervised Full Self-Driving (FSD) in Texas and its strong outlook for its Energy Storage division further add to Tesla’s long-term growth potential. At the same time, the firm has also cautioned about pricing pressures and low favorability ratings that may hamper short-term sales.
“Following mixed 4Q24 results, uncertainty caused by the Trump Administration, and TSLA’s low favorability ratings, we are modifying our estimates, maintaining our Buy, and reducing our target price to $474 from $492.”
Overall, TSLA ranks 5th on our list of AI news making waves on Wall Street. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.