Tesla vs. Nvidia: Which AI Stock Reigns Supreme?

As the AI boom continues, investors must weigh the merits of these two tech giants.

Published on Feb. 12, 2026

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The article compares the investment potential of electric vehicle maker Tesla and chipmaker Nvidia as leaders in the artificial intelligence (AI) space. While Tesla is making progress in autonomous driving and robotics, Nvidia's robust financials and dominant position in AI chips make it the better investment option according to the analysis.

Why it matters

The AI revolution is transforming industries, and investors are eager to identify the companies best positioned to capitalize on this trend. Tesla and Nvidia are two of the most prominent players, making this a crucial comparison for those looking to invest in the AI space.

The details

Tesla's core automotive business is facing challenges, but its energy storage and autonomous ride-sharing efforts show promise. Nvidia, meanwhile, is experiencing explosive revenue and profit growth driven by surging demand for its AI chips. The article notes Nvidia's valuation is more reasonable compared to Tesla's lofty multiple.

  • In fiscal Q3 2025, Nvidia's revenue rose 62% year-over-year to $57 billion.
  • In 2025, Tesla's energy storage deployments grew 49% year-over-year to 46.7 gigawatt hours.

The players

Nvidia

An American technology company that designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.

Tesla

An American electric vehicle and clean energy company that designs and manufactures electric cars, batteries, and related products.

Elon Musk

The CEO of Tesla who has outlined plans for the company to produce a humanoid robot called Optimus.

Jensen Huang

The CEO of Nvidia who has touted the company's strong financial performance and growth in AI-related businesses.

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What they’re saying

“Blackwell sales are off the charts, and cloud GPUs are sold out. Compute demand keeps accelerating and compounding across training and inference -- each growing exponentially.”

— Jensen Huang, CEO, Nvidia (Nvidia Q3 2025 earnings release)

What’s next

Tesla plans to begin producing its Optimus humanoid robot later this year, with the goal of eventually reaching a production volume of 1 million units per year.

The takeaway

While Tesla's AI-powered physical products like autonomous vehicles and robots are exciting, Nvidia's dominant position in AI chips and robust financial performance make it the better investment option for those looking to capitalize on the AI boom.