{"id":226623,"date":"2026-01-08T04:35:10","date_gmt":"2026-01-08T04:35:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/226623\/"},"modified":"2026-01-08T04:35:10","modified_gmt":"2026-01-08T04:35:10","slug":"should-you-forget-tesla-and-buy-3-artificial-intelligence-ai-stocks-instead","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/226623\/","title":{"rendered":"Should You Forget Tesla and Buy 3 Artificial Intelligence (AI) Stocks Instead?"},"content":{"rendered":"<p>                                    Key Points<\/p>\n<p>Tesla&#8217;s stock dipped following its loss of the title of world&#8217;s largest EV maker to Chinese rival BYD.<\/p>\n<p>Its earnings and revenue shrank over the past year, unlike AI companies Alphabet, Vertiv, and Micron Technology.<\/p>\n<p>The three AI companies, despite their price growth in 2025, are more reasonably valued than Tesla.<\/p>\n<p><a class=\"text-cyan-800 hover:text-cyan-600\" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c453b885-7b44-4168-8ed5-8de7fd9b3d30&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D10969%26source%3Disaedikp0000070%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_partner%26ftm_pit%3D17996\" rel=\"nofollow noopener\" target=\"_blank\">These 10 stocks could mint the next wave of millionaires \u203a<\/a><\/p>\n<p>It&#8217;s now official: Tesla <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/tsla\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: TSLA)<\/a> has lost its crown as the world&#8217;s largest <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/consumer-discretionary\/automotive-stocks\/electric-car-stocks\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" title=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/consumer-discretionary\/automotive-stocks\/electric-car-stocks\/ Shift+Click to open\" rel=\"nofollow noopener\">electric vehicle<\/a> (EV) maker. That distinction now belongs to Chinese automotive company BYD. <\/p>\n<p>Even though Tesla&#8217;s share price is down on the news, it&#8217;s still trading above $425\/share, very close to its all-time high.<\/p>\n<p>Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=288b0d0d-6016-4191-8d5c-06e0e80a10c6&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001096%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dtop_incontent_pitch_feed_partner%26ftm_pit%3D17547&amp;utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" rel=\"nofollow noopener\" target=\"_blank\">Continue \u00bb<\/a><\/p>\n<p>Should you <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/how-to-invest-in-tesla-stock\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" rel=\"nofollow noopener\">buy shares<\/a> of the former top EV maker on the dip? Or would you be better off putting your money into three <a href=\"https:\/\/www.fool.com\/terms\/a\/artificial-intelligence\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" rel=\"nofollow noopener\">artificial intelligence<\/a> (AI) stocks instead?<\/p>\n<p>The proposition<\/p>\n<p>Tesla&#8217;s shares currently trade above $400\/share, so a pair of Tesla shares would cost you more than $800.<\/p>\n<p>However, for roughly the same cost as two shares of Tesla, you could buy one share of AI heavyweight Alphabet <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/goog\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: GOOG)<\/a> <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/googl\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: GOOGL)<\/a> for about $315; one share of memory chip maker Micron Technology <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/mu\" rel=\"nofollow noopener\" target=\"_blank\">(NASDAQ: MU)<\/a>, which also trades at about $315\/share; and one share of power and cooling infrastructure player Vertiv Holdings <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/vrt\" rel=\"nofollow noopener\" target=\"_blank\">(NYSE: VRT)<\/a> for about $175. That&#8217;s a total cost of about $805.<\/p>\n<p>Which of these would be a better buy for your $800 and change?<\/p>\n<p><img decoding=\"async\" alt=\"A humanoid robotic hand with fingers and thumb outstretched.\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1767846910_842_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Tesla.<\/p>\n<p>How they did in 2025<\/p>\n<p>2025 was an amazing year for <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" rel=\"nofollow noopener\">AI stocks<\/a>. Even though the S&amp;P 500 was up an impressive 16.4% in 2025, Vertiv&#8217;s stock was up 54.5%, Alphabet&#8217;s shares rose 66.5%, and Micron&#8217;s shares returned a jaw-dropping 275% for the year. Tesla&#8217;s shares, on the other hand, languished. The carmaker&#8217;s stock only rose 8.5% for the year. <\/p>\n<p>Such explosive growth in the AI stocks&#8217; share prices wasn&#8217;t always accompanied by explosive revenue growth. Even though all three of the AI stocks grew their revenue in 2025, those gains were modest, with Alphabet&#8217;s revenue only up 10.2%, Vertiv&#8217;s up 21%, and Micron&#8217;s increasing by 35.1%. <\/p>\n<p>All three companies did a better job growing their profits. Alphabet&#8217;s net income rose 24.1% year over year, which is still well below its share price gains, while Vertiv grew its net income by 108.6%, and Micron notched 154.9% growth. All three beat Tesla on both fronts as Elon Musk&#8217;s flagship company&#8217;s revenue slipped 2.1% and profits tumbled 27.8%.<\/p>\n<p>So even though the AI stocks have already seen significant growth over the past year, that growth is underpinned by growth in the top and bottom lines. Meanwhile, Tesla&#8217;s share price growth, although underwhelming, outpaced its business fundamentals, which didn&#8217;t grow at all. From a performance standpoint, the basket of AI stocks looks like a better buy.<\/p>\n<p>A question of value<\/p>\n<p>When a company&#8217;s share price goes up faster than its underlying fundamentals, its valuation increases as well. When a stock&#8217;s valuation gets too high, it&#8217;s sometimes unsustainable. So one of the big questions for the AI stocks is whether their big 2025 share price gains have put them into overvalued territory, where they might be ripe for a share price correction. <\/p>\n<p>Surprisingly, though, the trailing <a href=\"https:\/\/www.fool.com\/terms\/p\/pe-ratio\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" rel=\"nofollow noopener\">price-to-earnings<\/a> (P\/E) ratios of the AI stocks haven&#8217;t risen significantly, despite their recent share price appreciation. In the case of Vertiv, its trailing P\/E is actually down year over year. All three are well within their five-year ranges.<\/p>\n<p>Better still, for all three stocks, their <a href=\"https:\/\/www.fool.com\/terms\/f\/forward-pe\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" rel=\"nofollow noopener\">forward P\/E ratios<\/a>, which look at estimated earnings for the coming year, are lower than their <a href=\"https:\/\/www.fool.com\/terms\/t\/ttm\/?utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" target=\"_blank\" rel=\"nofollow noopener\">trailing<\/a> P\/E ratios, indicating that the companies&#8217; earnings are expected to grow into their new stock prices. While Alphabet&#8217;s forward P\/E of 28.3 is only slightly lower than its trailing P\/E of 31, Vertiv&#8217;s 32.8 forward P\/E is just half of its trailing 65.3 P\/E. And Micron&#8217;s forward P\/E of 9.6 is less than one-third of its trailing P\/E of 29.5!<\/p>\n<p>The valuations of all three AI stocks are massively lower than Tesla&#8217;s trailing P\/E ratio of 304.3, and even its forward P\/E of 205.6. From a valuation standpoint, it&#8217;s a very clear win for the AI stocks as well.<\/p>\n<p>All things considered, a basket of AI stocks consisting of a share each of Alphabet, Vertiv, and Micron looks like a better use of $850 than buying two shares of Tesla.<\/p>\n<p>Don\u2019t miss this second chance at a potentially lucrative opportunity<\/p>\n<p>Ever feel like you missed the boat in buying the most successful stocks? Then you\u2019ll want to hear this.<\/p>\n<p>On rare occasions, our expert team of analysts issues a <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c55b7f21-0c81-4fd5-8bc6-f396f99c7140&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-dd-4%3Faid%3D11123%26source%3Disaeditxt0001036%26ftm_cam%3Dsa-dd%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D17184&amp;utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" rel=\"nofollow noopener\" target=\"_blank\">\u201cDouble Down\u201d stock<\/a> recommendation for companies that they think are about to pop. If you\u2019re worried you\u2019ve already missed your chance to invest, now is the best time to buy before it\u2019s too late. And the numbers speak for themselves:<\/p>\n<p>Nvidia: if you invested $1,000 when we doubled down in 2009, you\u2019d have $485,740!*<br \/>\nApple: if you invested $1,000 when we doubled down in 2008, you\u2019d have $49,911!*<br \/>\nNetflix: if you invested $1,000 when we doubled down in 2004, you\u2019d have $488,653!*<\/p>\n<p>Right now, we\u2019re issuing \u201cDouble Down\u201d alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.<\/p>\n<p><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c55b7f21-0c81-4fd5-8bc6-f396f99c7140&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-dd-4%3Faid%3D11123%26source%3Disaeditxt0001036%26ftm_cam%3Dsa-dd%26ftm_pit%3D17184%26ftm_veh%3Darticle_pitch_feed_partners&amp;utm_source=nasdaq&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f29dfe47-e7b6-46cd-bf4d-d46902fcf3fa\" rel=\"nofollow noopener\" target=\"_blank\">See the 3 stocks \u00bb<\/a><\/p>\n<p class=\"disclaimer\" style=\"font-size: 0.65rem; color: #767676; margin-top: 5px; text-align: left;\">*Stock Advisor returns as of January 7, 2026. <\/p>\n<p><a href=\"https:\/\/www.fool.com\/author\/2866\/\" rel=\"nofollow noopener\" target=\"_blank\">John Bromels<\/a> has positions in Alphabet, Micron Technology, and Tesla. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\">disclosure policy<\/a>.<\/p>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Tesla&#8217;s stock dipped following its loss of the title of world&#8217;s largest EV maker to Chinese&hellip;\n","protected":false},"author":2,"featured_media":85953,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":{"0":"post-226623","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-il","12":"tag-israel","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/226623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=226623"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/226623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/85953"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=226623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=226623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=226623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}