Nvidia (NVDA) and Tesla (TSLA), two of the best-performing stocks in the S&P 500, are riding high on artificial intelligence (AI) momentum. Nvidia’s shares have surged 2,690% since January 2020, while Tesla’s shares have added 1,010%. Analysts at I/O Fund and Ark Invest expect both companies to continue their upward trajectory.
Nvidia is poised for significant growth as AI demand grows in data centers and edge devices. The company holds a market share of over 90% in data center GPUs and is expected to maintain its dominance through the end of the decade. CEO Jensen Huang notes that Nvidia’s focus has expanded beyond chips, with a growing cloud services business and generative AI networking gear.
Nvidia is well-positioned to benefit from the physical AI boom, which includes autonomous machines like cars and robots. The company aims to power billions of robots and hundreds of millions of autonomous vehicles, driving its stock price higher. With grand view research estimating annual earnings growth of 36% through the end of the decade, Nvidia’s stock could reach $410 per share by 2030.
In contrast, Tesla’s analysts at Ark Invest expect the company to trade at $2,600 per share by 2029, but a closer look reveals concerns. While autonomous driving technology has Tesla ahead of Waymo, its full self-driving software relies on computer vision rather than expensive lidar and radar systems. Additionally, Tesla’s robotaxi service is still in its early stages, and the company faces competition from aging electric cars.
Key takeaways: Nvidia is poised for significant AI-driven growth, while Tesla’s autonomous driving technology has some advantages but also comes with concerns about its execution and competitiveness.
Source: https://www.fool.com/investing/2025/07/12/2-ai-stocks-to-buy-before-soar-735-wall-street