We recently published a list of 9 Buzzing AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other buzzing AI stocks on latest news and ratings.
Last month, DeepSeek wreaked havoc in the tech world by launching its popular chatbot and artificial intelligence model. While the advancements haven’t been exactly ahead of its Western competition, what spooked investors worldwide is its claims that its model took only $5.6 million in training costs using less advanced, and fewer, computer chips than those employed by tech giants.
These claims have led to concerns about the economics of AI development and competition for big tech players. There have also been suspicions regarding data distillation from Western models, disrupting AI leadership in the Western world.
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Another impact DeepSeek’s emergence has had on the AI world is that it has highlighted several new risks and even challenged market assumptions about how AI will develop.
“The DeepSeek saga is a fascinating inflection point in AI’s trajectory, raising ESG questions that extend beyond energy and market concentration”.
-Peter Huang, co-founder of Openware AI.
“Smaller companies and developers who couldn’t compete before can now get in the game …. It’s like we’re seeing a democratisation of AI development. And the efficiency gains are significant as they’re achieving similar results with much less computing power, which has huge implications for both costs and environmental impact.”
– Camden Woollven, group head of AI product marketing at IT governance and compliance group GRC International.
While all this may be true, one South Korean spy agency has accused the Chinese AI app DeepSeek of “excessively” collecting personal data. Not only does it collect data, but also uses all input data to train itself. According to The National Intelligence Service (NIS), an official notice was sent to government agencies last week advising them to take security precautions over the artificial intelligence app.
“Unlike other generative AI services, it has been confirmed that chat records are transferable as it includes a function to collect keyboard input patterns that can identify individuals and communicate with Chinese companies’ servers such as volceapplog.com”.
-NIS said in a statement issued on Sunday.
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.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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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 10th, Needham maintained a “Hold” rating on the stock. The firm stated that upon reviewing the firm’s model, it has been revealed that the company’s longer-dated growth levers around FSD, Robotaxi, and Robotics look “more priced in than not”. Even though autonomous ridesharing is gaining momentum, the firm still considers Tesla stock to be overpriced. It also stated that the company is behind in autonomous rideshare and the Robotics business is still in its early stages.
“We still see an expensive stock, with TSLA needing to trade at 50x our new ’32 estimates discounted back to drive ~30% upside from current prices, despite TSLA operating from a trailing position in autonomous rideshare and the early stage nature of the Robotics business”.
-Analysts led by Chris Pierce said in a note
Overall, TSLA stock sports a consensus Hold rating on Wall Street. The average price target of $336 implies a 4% downside from current levels.
Overall, TSLA ranks 6th on our list of buzzing AI stocks on latest news and ratings. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
