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Cathie Wood’s 11 Biggest Data Center & AI Stock Picks. Tesla Inc. (NASDAQ:TSLA) is ranked No. 1 (see Cathie Wood’s 5 Biggest Data Center & AI Stock Picks).
Wood has a $2,600 price target for Tesla Inc (NASDAQ:TSLA) for 2029. In an interview on YouTube earlier this year, Wood said that most of Tesla’s upside potential comes from robotaxis.
Tesla Inc. (NASDAQ:TSLA) is no longer just an electric vehicle company. It is becoming an artificial intelligence and robotics company, backed by heavy investments in computing, chips and automation. The company has raised its capital spending plan to $25 billion from $20 billion to fund this turnaround. Tesla Inc. (NASDAQ:TSLA) is targeting mass production of its Optimus humanoid robot, aiming to reach 1 million units per year by the late 2020s and up to 10 million units per year by the early 2030s. Why does this matter? The global robotics market is estimated to reach around $416 billion by 2035, with annual growth of approximately 14%. This could be a key growth driver for Tesla in the future.
Tesla Inc. (NASDAQ:TSLA) also has a key data advantage thanks to its global fleet of millions of vehicles, which continually collect real-world driving footage. That data is fed back to your neural networks, creating a feedback loop that improves your AI learning systems.
Unlike its competitors that rely on LiDAR and high-definition maps, Tesla Inc. (NASDAQ:TSLA) uses a vision-based approach built around cameras and neural networks. Tesla’s camera-based system relies on AI to interpret the world from video, turning raw driving data into real-time decisions and making autonomy a software issue rather than a hardware one.
Despite increasing competition in the electric vehicle space, Tesla Inc. (NASDAQ:TSLA) can make up for lost market share with innovation and advancements in AI.
Pixabay/Public domain
While we recognize TSLA’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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