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Artificial intelligence has prospects for industries on a giant scale. A study by PwC estimates that the great success of AI will contribute 15. 7 trillion dollars to the world economy until 2030.
If you find these numbers hard to understand, you’re in smart company. But this estimate is a very smart indicator that we are on the cusp of significant progress in automation, thanks to AI. Some tech corporations are already benefiting from this change. Here are two AI stocks that are reshaping their respective markets.
Nvidia (NVDA 3. 94%) deserves the most sensible spot on this list because the company’s semiconductors are at the center of nearly every advance in AI. Nvidia GPUs account for between 70% and 95% of the AI chip market and are used for everything from generative AI chatbots to autonomous vehicle driving systems.
For example, Nvidia CEO Jensen Huang said at CES 2025 recently that AI agents, advanced chatbots that can complete tasks on their own without outside prompts, could become a “multitrillion-dollar market” in the coming years. Accenture, SAP, Salesforce, and other companies are already using Nvidia’s hardware to develop their own agents. Nvidia says billions of these AI agents could be deployed over the next several years.
Additionally, Nvidia is benefiting from the progression of autonomous and semi-autonomous driving systems. The company’s DRIVE autonomous vehicle platform is used across major automakers, including Toyota, General Motors, and even Amazon’s robotaxi company Zoox. Nvidia already generates significant revenue in its automotive segment, and Huang recently said that auto sales will reach an annual rate of $5 billion this year.
Of course, I can’t leave out Nvidia’s massive opportunity in AI data centers. Huang has been clear about how big he believes AI will be for this company, saying that spending for AI data centers will double over the next five years to $2 trillion. That spending will bring more AI automation, and Nvidia’s leading position in semiconductors means it will continue tapping into that growth.
Tesla (TSLA -0. 72%) is the biggest player in the AI automation boom. The company is active in several key automation markets, the most important of which is likely semi-autonomous vehicles.
Tesla’s driver assistance formula (called fully self-driving or FSD) is not completely autonomous, but uses sensors, cameras and artificial intelligence chips to allow drivers to take part in the road. Some Teslas can also park or exit their parking area and meet their driver in the parking lot.
However, Tesla has much more ambitious plans that involve launching its own autonomous robo-taxi vehicle called Cybercab. Tesla CEO Elon Musk unveiled Cybercab at an event several months ago and said it could be priced at around $30,000 and go on sale before 2027. The global ridesharing services market will be worth around $213 billion through 2029.
In addition, Tesla has built its own robot, called Optimus, and is ramping up production. Robots can carry out repetitive, dangerous, and labor-intensive responsibilities that humans might not possibly need to carry out. Tesla says it will begin mass production of its Optimus robots this year and will have between 50,000 and 100,000 robots until next year.
Citigroup estimates that the global market for humanoid robots could reach $7 trillion by 2050, with big prospects for Tesla. Musk is well aware of this opportunity and recently said that Optimus could raise Tesla’s market price to $25 billion.
There’s no denying that a global AI race between corporations is underway. The corporations mentioned above are making wonderful strides in AI automation and may continue to play a leading role in the coming years.
Just keep in mind that some of those stocks are also presented at premium prices. Tesla shares have an anticipated price-to-earnings ratio of 115, while Nvidia’s are less expensive with an anticipated price-to-earnings ratio of 32. If you buy OR, make sure you’re comfortable with the premium related to owning a security. Better AI stock.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Citigroup is an advertising partner of Motley Fool Money. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Accenture Plc, Amazon, Nvidia, Salesforce and Tesla. The Motley Fool recommends General Motors and recommends the following options: $25 January 2025 calls on General Motors, $290 January 2025 calls on Accenture Plc, and short $310 January 2025 calls on Accenture Plc. The Motley Fool has a disclosure policy.
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