With the launch of OpenAI's ChatGPT and giants like Microsoft and Google rushing to launch their own generative artificial intelligence products, investors have been keen to find opportunities in the segment.
With the lack of niche AI companies to invest in, non-core companies that massively benefit from the AI boom have been at the center of attention. At the forefront among these beneficiaries is Nvidia Corp. (NASDAQ:NVDA), which has fetched multibagger returns this year.
Nvidia originally designed its GPUs with video games in mind, but researchers would soon discover their handiness in training deep learning models. The company, under the leadership of its President and CEO Jensen Huang, capitalized on the development by launching general-purpose GPUs.
Wedbush analyst Dan Ives recently dubbed Huang the "godfather of AI."
Meanwhile, the popularity of electric vehicle stocks led by Tesla Inc. (NASDAQ:TSLA) among retail traders and investors has been significantly muted.
With wider market conditions becoming unfavorable and CEO Elon Musk's heightened focus on social media venture X, which he rebranded from Twitter, Tesla has fallen relatively out of favor as seen with its price trajectory.
Figure: Comparison of market price trajectory of TSLA and NVDA over a period of one year. Credit: Neer Varshney /Benzinga
Tesla’s price has fallen about 16.5% over the past year, from $287.81 on Sept. 28, 2022, to $240.50 on Sept. 27, 2023, the timeframe studied by Benzinga.
In the same timeframe, Nvidia price has surged about 233.6%, from $127.28 to $424.68.
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How Tesla And Nvidia's Returns Compare
A theoretical $100 investment in both stocks a year ago would ...