Tesla, Inc. (TSLA) Gains Price Target Boost from Bank of America Amid AI and Robotics Advances

We recently compiled a list of the 10 AI News Investors Should Not Miss. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against the other AI stocks investors should not miss.

During an appearance on CNBC’s Squawk Box Europe, Matt Calkins, CEO of Appian, discussed the outlook for the artificial intelligence industry and regulation in the United States with Donald Trump set to become president.

When asked if there is a bit of a gold rush regarding AI, Calkins agreed. He said that AI comes with significant concerns, particularly among CEOs. This is because AI has the potential to embarrass organizations or compromise sensitive data, which creates hesitation. “We are all looking for a safe way to take the first step with AI,” he said.

READ NOW: 15 AI News Investors Shouldn’t Miss and 15 Buzzing AI Stocks Making Headlines 

Regarding whether companies are panicking about using AI profitably, Calkins observed a cautious approach from most businesses, while large tech firms have been investing aggressively. “It’s a calculated risk, and they should be doing it,” he said, contrasting this with the restraint shown by smaller companies.

Talking about regulation, Calkins revealed that the bottom line is that AI can be somewhat dangerous if misused, which underscores the importance of regulatory frameworks. He referenced the European AI Act as an example, explaining that regulation could focus on restricting how AI is used or limiting the types of data it can access.

With the Trump administration coming in, Calkins predicted a strong focus on competing with China in the tech space. He also mentioned Elon Musk’s influence on Trump, stating that Musk’s influence on the Trump administration is positive because he knows deeply about artificial intelligence.

In other recent news, Sam Altman has announced a special event titled “12 Days of OpenAI”. Altman will be revealing a new model or feature every weekday for two weeks, posted Altman on X, formerly Twitter. Some new models and features that users have been predicting include AI video generator Sora, the complete version of the “o1” reasoning model, and better control over ChatGPT’s Advanced Voice feature.

“Each weekday, we will have a livestream with a launch or demo, some big ones and some stocking stuffers”.

With OpenAI seemingly in holiday spirits, the series of reveals will be live-streamed starting December 5, continuing for the next twelve weekdays. It looks like a very merry Christmas for all the tech fans.

Story Continues

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

25 Most In Demand Cars Heading into 2024

Number of Hedge Fund Holders: 99

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On December 5, Bank of America raised its target price on Tesla, Inc. (NASDAQ:TSLA) from $350.00 to $400.00 and gave a “Buy” rating. The rating follows Tesla’s recent focus on robotics and artificial intelligence, highlighted as the key to its long-term development plan. The optimism follows analyst John Murphy’s recent visit to Tesla’s Gigafactory in Austin, Texas.

Murphy said that the trip gave increased confidence that Tesla is well-positioned to grow in 2025+, citing discussions with investor relations, a factory tour, and test drives showcasing Tesla’s technological advancements. In particular, Tesla’s Full Self Driving (FSD) technology stood out during the visit, with the Cybertruck and Model Y adeptly navigating construction zones and executing challenging left turns against traffic. Moreover, Murphy highlighted Tesla’s growing AI infrastructure, including 50,000 active Nvidia H100 chips as of October, which positions the company to potentially launch its robotaxi service by 2025.

Overall TSLA ranks 4th on our list of the AI stocks investors should not miss. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

 

Disclosure: None. This article is originally published at Insider Monkey.