Nvidia (NVDA 1.48%) and Tesla (TSLA 2.50%) are two of the most valuable companies in the world primarily because they are deeply involved in the artificial intelligence (AI) revolution. Nvidia supplies accelerated computing platforms that power AI workloads, and Tesla is developing autonomous driving technology and humanoid robots.
Some experts think the companies will be worth much more (at least $20 trillion) in the future:
- I/O Fund analyst Beth Kindig says Nvidia could be worth $20 trillion by 2030. That implies about 340% upside from its current market value of $4.5 trillion .
- CEO Elon Musk says Tesla could be worth $25 trillion at some point in the future. That implies about 1,560% upside from its current market value of $1.5 trillion.
Here's what investors should know about these AI stocks.
Image source: Getty Images.
Nvidia: 340% upside implied by Beth Kindig's prediction
Nvidia graphics processing units (GPUs), chips that accelerate demanding data center workloads, are the industry standard in artificial intelligence (AI) infrastructure. Not only because they consistently outperform GPUs from other chipmakers, but also because Nvidia supplements its GPUs with adjacent hardware and software. The company says it takes a "full-stack" approach to accelerated computing.
Nvidia accounted for about 85% of AI accelerator sales in 2025, and many analysts expect the company to maintain a similar level of dominance for years to come. While other chips may be cheaper, Nvidia systems typically have the lowest total cost of ownership because customers do not have to integrate hardware from different suppliers, nor do they have to build software development tools from scratch.
Last week, Nvidia CEO Jensen Huang dismissed concerns about an AI bubble at the World Economic Forum in Davos. "There are trillions of dollars of infrastructure that need to [be] built out," he commented during an interview. Indeed, Grand View Research estimates the data center GPU sales will increase at 36% annually through 2033, and I/O Fund analyst Beth Kindig expects Nvidia's data center revenue growth to match that pace.
Wall Street estimates Nvidia's adjusted earnings will increase at 38% annually over the next three years. That makes the current valuation of 46 times earnings look quite reasonable. I think Nvidia could achieve a $20 trillion market value in the future, but I am skeptical about timing. It could happen by 2030, but 2035 seems more plausible.
Regardless, the current share price is attractive compared to forward earnings estimates, so patient investors should consider buying a small position today.
NASDAQ: TSLA
Key Data Points
Tesla: 1,560% upside implied by Elon Musk's prediction
Last year, Tesla lost its status as the global leader in electric cars sales to Chinese automaker BYD. But investors have brushed aside the market share losses and the correspondingly dismal financial results because the investment thesis now centers on physical AI, a discipline that includes autonomous cars and robots.
Tesla's full self-driving (FSD) software is available in the U.S. and (pending regulatory approval) could launch in Europe and China in February. The company will monetize FSD directly through subscription sales and indirectly through autonomous ride-sharing services. Alphabet's Waymo is currently the market leader with commercial robotaxi services in five U.S. cities. But Tesla plans to expand from two cities to seven cities in 2026 and believes its unique vision-only strategy will support rapid scaling.
Tesla is also building a humanoid robot called Optimus that could substantially disrupt the global jobs market by automating a broad range of work, and not just dangerous and boring work, but also surgery and other tasks that require delicacy and precision. CEO Elon Musk says Optimus will eventually be the most important product the company sells, accounting for as much as 80% of its value.
Physical AI is a significant opportunity for Tesla. Grand View Research expects the robotaxi market to expand at 99% annually through 2033. Meanwhile, Morgan Stanley estimates autonomous vehicle sales could approach $4 trillion annually by 2040, while humanoid robot sales increase at 54% annually through 2035.
Here is the big picture: Musk says Tesla's expertise in physical AI is unparalleled. "No one can do what we do," he told analysts last year. Yet, the stock is very difficult to value. The core electric car business is struggling, and physical AI products are not yet a material source of revenue. That creates execution risk.
In other words, while Tesla may indeed be worth $25 trillion in the future, the company could also be worth much less if it fails to execute on opportunities in robotaxis and robots. Indeed, if investors lose confidence in the physical AI narrative and start valuing Tesla like an automotive stock, shares could easily fall 90%.
