Tesla vs. Nvidia: Who's the real winner of the AI race?

Daniel Newman, CEO, Futurum Group, breaks down where the real AI opportunity lies.

Transcript

00:00Tesla's not going to be something I'd be adding into my portfolio at this point. Like I said,

00:04I like the company. I believe physical AI is something that Elon Musk will do well,

00:10but I still think the physical AI winner is NVIDIA. I think NVIDIA gets a piece of all of it.

00:15I think that it's become such a reasonably priced stock based on the expectation of the market share

00:20it will continue to take, the profits and cash flow that it continues to generate. So it's like

00:24you're playing this way and you want something with tons of upside, but you also want something

00:27that is supported by fundamentals. Every other company in the Max 7 needs NVIDIA, including

00:33Tesla. And by the way, every technology company in the world needs NVIDIA right now in some way,

00:38shape or form. So I absolutely believe there. Tesla is an ancillary beneficiary to physical AI,

00:44but the revenue just doesn't support it. So I'd play the NVIDIA play and let Tesla benefit from

00:50using NVIDIA technology. And at some point, like I said, watch for Tesla to start showing signs that

00:56it can grow into the narrative. But I still want to see that car go across the country. The one I

01:00heard about like eight years ago. So there's just some things that, like I said, Musk just exists,

01:05functions and succeeds on his own timeline. The investors that buy, they understand that,

01:09know that, but there's significant risk associated with that.