By Daniel Sparks, The Motley Fool
Publication Date: 2026-02-12 15:06:00
One of the two stocks looks like a far better way to play the AI boom.
The artificial intelligence boom is here. And it’s undeniable. Alphabet‘s Waymo is providing 400,000 autonomous rides per week and tech giants are collectively committing to spending hundreds of billions of dollars on capital expenditures in 2026, driven primarily by AI computing infrastructure.
As investors assess the implications of the technological revolution we find ourselves in, it’s a good time to consider what companies are sitting at the center of this new era. I’d argue that AI chipmaker Nvidia (NVDA 0.16%) and electric carmaker Tesla (TSLA 0.59%) are two of the most pivotal players in today’s AI race. Nvidia is powering this expansionary moment with its chips, and Tesla is extending AI into the physical world with autonomous vehicles and robotics.
But which of these two AI growth stocks is the better buy? To find out, let’s look closely at both.
Tesla’s unreleased Cybercab, purpose-built for autonomy. Image source: Tesla.
Tesla: Big, bold plans
For investors looking at Tesla, you’ll have to first get comfortable with the fact that the company’s core business is going through a rough patch before you are ready to invest in the company. Tesla’s 2025 deliveries of about 1.6 million fell 9% year over year as elevated interest rates and a lack of a clear catalyst for its vehicle business weighed on the business. In addition, the company’s full-year revenue fell 3% year over year, and its…
