By Daniel Sparks
Publication Date: 2025-12-10 20:00:00
Both stocks have recently delivered good returns. But only one seems like a good choice for 2026.
In the last six months Tesla (TSLA +1.52%) And alphabet (GOOGL +1.01%) Both have made eye-catching gains as investors appear to be rushing into everything AI (artificial intelligence) related. Tesla shares are up more than 45% in that period, while Alphabet is up nearly 70% and is approaching a market cap of $4 trillion.
The stories behind these steps are completely different. Tesla is still primarily an electric vehicle company that is trying to reinvent its future around autonomous driving and humanoid robots. Alphabet, in turn, generates revenue from search advertising, YouTube and a fast-growing cloud computing company – and integrates AI into all of these offerings.
Both companies could be big AI winners in 2026 and beyond. But when you weigh the valuation and underlying business fundamentals of these companies, Alphabet appears to be the better company…
