Why Analysts Think This Stock Is the Best AI Pick
- Finance
ThePostMaster- 0
- 8 minutes read
In a recent interview with CNBC, Wedbush analyst Dan Ives suggested that the next stage of the artificial intelligence (AI) revolution will be “physical AI,” and only a couple of companies will stand to benefit from this shift. Aside from Nvidia (NVDA), which doesn’t come as a surprise, Ives believes Tesla (TSLA) could also be the best physical AI play in the world, arguing that the company’s ambitions extend far beyond electric vehicles (EVs).
Let’s find out what makes Ives so confident about Tesla.
In the CNBC segment, Ives discussed that AI is rapidly evolving beyond software and cloud-based applications into what Ives describes as “physical AI.” This new phase of AI focuses on real-world deployment—autonomous vehicles, robotics, and intelligent machines operating in physical environments rather than just digital platforms. Ives refers to Tesla not simply as an EV manufacturer but as a leader in embodied AI. He points to developments such as autonomous driving technology and robotics programs as major factors that could change how investors value the company over time.
Tesla’s long-term vision centers on AI and robotics, which will significantly enhance production and reduce costs across industries. In its recent Q4 earnings call, Musk emphasized that Tesla’s investments in autonomy, robotics, batteries, solar energy, and AI chips are interconnected pieces of a larger technological ecosystem. He described it as an era of “amazing abundance.” Tesla continues to advance its Full Self-Driving (FSD) technology, with unsupervised autonomous rides already taking place in Austin without safety monitors or chase vehicles. The company believes and predicts that autonomous vehicles will eventually dominate transportation, with robotaxis serving as shared assets rather than privately driven cars.
Furthermore, Tesla’s humanoid robot Optimus is arguably the best example of physical AI in operation. The company wants to transform the Model S and Model X production space into an Optimus factory, with the long-term objective of producing up to one million robots per year at its Fremont facility. Musk claimed that Tesla is also looking into the potential of constructing a large-scale semiconductor fabrication facility known as a “TerraFab” to decrease supply-chain risks and assure adequate compute power for self-driving cars and robotics.
