Daniel Newman, CEO, Futurum Group, breaks down where the real AI opportunity lies.
Transcript:
DANIEL NEWMAN: Tesla’s not going to be something I’d be adding into my portfolio at this point. Like I said, I like the company. I believe physical AI is something that Elon Musk will do well, but I still think the physical AI winner is Nvidia. I think NVIDIA gets a piece of all of it. I think that it’s become such a reasonably priced stock based on the expectation of the market share. It will continue to take the profits and cash flow that it continues to generate. So it’s like you’re playing this way and you want something with tons of upside, but you also want something that is supported by fundamentals. Every other company in the mag seven needs Nvidia, including Tesla. And by the way, every technology company in the world needs Nvidia right now in some way, shape, or form. So I absolutely believe their Tesla is an ancillary beneficiary to physical AI, but the revenue just doesn’t support it. So I’d play the NVIDIA play and let Tesla benefit from using NVIDIA technology. And at some point, like I said, watch for Tesla to start showing signs that it can grow into the narrative. But I still want to see that car go across the country. The one I heard about eight years ago. So there’s just some things that, like I said, Musk just exists, functions and succeeds on his own timeline. The investors that buy, they understand that know that. But there’s significant risk associated with that.
Watch Daniel’s full interview here:
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