The Motley Foolยท2025-07-12 07:45Core Insights - Nvidia and Tesla are among the top three performers in the S&P 500 this decade, driven by the growth of artificial intelligence (AI) [1] - Nvidia shares have surged 2,690% since January 2020, while Tesla shares have increased by 1,010% during the same period [2] Nvidia - Analysts predict Nvidia stock could reach $410 per share by 2030, representing a 150% upside from its current price of $164 [5][8] - Nvidia holds over 90% market share in data center GPUs, with expectations of a 160% increase in AI chip sales by the end of the decade [6] - The company is expanding beyond chip manufacturing into generative AI networking and cloud services, indicating a broader business model [7] - Nvidia's growth is supported by an anticipated annual increase in AI spending of 36% through the end of the decade, potentially leading to similar earnings growth [11] - Current trading at 53 times earnings is a discount compared to a three-year average of 80 times earnings [12] Tesla - Ark Invest analysts forecast Tesla stock could reach $2,600 per share by 2029, implying a 735% upside from its current price of $310 [8][13] - Robotaxis are expected to generate 63% of Tesla's revenue by 2029, with electric cars, energy storage, and insurance making up the remainder [13] - Tesla's full self-driving (FSD) technology is based on computer vision, providing a potential competitive edge over rivals like Waymo [14] - Tesla has a significant data advantage with more camera-equipped vehicles on the road, which could enhance its AI models [15] - The company has initiated its first autonomous ride-sharing service, with expectations of substantial revenue from robotaxis by late next year [16] - Despite these prospects, Tesla has faced challenges, including a 13% drop in deliveries and loss of market share in electric vehicles [17]