Elon Musk is the chief executive of Tesla and the founder of xAI. Both companies are working on artificial-intelligence projects.
Elon Musk doesn’t consider himself an investor. But if he had to park some money in the world of artificial-intelligence stocks, he recently praised a pair of options.
“AI and robotics are going to be very important,” Musk in a Sunday episode of Zerodha founder Nikhil Kamath’s “People by WTF” podcast. “The output of goods and services from AI and robotics is so high that it will dwarf everything else.”
Musk has long portrayed Tesla (TSLA), the electric-vehicle and robotics company he leads, as a play on those trends. But when Kamath asked Musk for another stock he’d invest in at current levels, he recommended two: fellow “Magnificent Seven” members Alphabet (GOOGL) and Nvidia (NVDA).
Those stocks have accounted for more than a third of the S&P 500’s gains so far this year, according to DataTrek Research. And based on the premise of the question, Musk was implying they still look attractive even after their recent rallies. Alphabet’s stock has risen about 68% so far this year and Nvidia’s stock is ahead 34%.
Alphabet has “laid the groundwork for an immense amount of value creation from an AI standpoint,” Musk said.
Last month saw the company launch its well-received Gemini 3 AI model, while Google’s chips have also been winning praise. Meta Platforms (META), which is heavily investing in AI, has reportedly explored a deal to put some of Google’s hardware in its data centers.
Plus, there’s Waymo, Tesla’s main rival in the robotaxi race. The Google-backed startup operates a fully autonomous ride-hailing service in five cities and has another 12 picked out for short-term expansion. Last month, it became the first provider to offer autonomous trips on U.S. freeways without a safety monitor.
Nvidia, to Musk, is an “obvious” pick. It’s still the dominant figure in the AI trade and works with just about every major player in the industry.
Nvidia is coming off a 62% year-over-year revenue increase in the latest quarter, largely stemming from its work on data centers, the backbone of the AI industry and a key focus for investment.
While Google competes with Musk’s companies, Nvidia has been a steady partner to Tesla. Musk has often spoke favorably of Nvidia CEO Jensen Huang, who joined him last month as they announced plans to work together, alongside a Saudi Arabian AI company, on a giant data center in Saudi.
When looking beyond AI and robotics, Musk also said companies working on “space flight” are another potential worthy investment. His SpaceX, a private company, is the leader in the launch industry, although several public companies, such as Rocket Lab (RKLB), seek to challenge its dominance.
