Cathie Wood’s 5 Biggest AI and Data Center Stock Picks

Page 5 of 5

1. Tesla Inc. (NASDAQ:TSLA)

Cathie Wood’s Stake: $1,310,705,149

Tesla Inc. (NASDAQ:TSLA)  is no longer just an EV company. It is becoming an AI and robotics company, backed by heavy investment in compute, chips, and automation. The company has raised its capital spending plan to $25 billion from $20 billion to fund this pivot. Tesla Inc. (NASDAQ:TSLA) is targeting mass production of its Optimus humanoid robot with a goal of reaching 1 million units annually by the late 2020s and up to 10 million units per year in the early 2030s. Why does this matter? The global robotics market is estimated to reach about $416 billion by 2035, growing at an annual rate of roughly 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 continuously collect real-world driving footage. That data is fed back into its neural networks, creating a feedback loop that improves its AI learning systems.

Unlike 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 problem rather than a hardware one.

Despite the rising competition in the EV space, Tesla Inc. (NASDAQ:TSLA) can offset the loss of market share with innovation and strikes in the AI domain.

While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5