Should You Forget Tesla and Buy These 2 Artificial Intelligence (AI) Stocks Right Now?

Core Viewpoint - Tesla is undergoing a significant transition from being primarily an electric vehicle (EV) company to focusing on robotics and autonomous vehicles (AVs), which presents both opportunities and risks for shareholders [1][3]. Tesla's Transition and Financial Performance - The potential market for AVs is projected to reach $1.4 trillion by 2040, while humanoid robotics could be valued at $5 trillion by 2050, with Tesla actively pursuing these markets [3]. - Tesla's core EV business is experiencing a slowdown, with a decline in sales during the fourth quarter and a first-time annual revenue drop to $94.8 billion [4]. - Operating expenses increased by 39% in the last quarter, amounting to $3.6 billion, and net income fell by 60% to $0.24 per share [4]. - The company anticipates capital expenditures of at least $20 billion this year to support its transition to robotics and AVs [5]. - Tesla's shares have a trailing price-to-earnings (P/E) ratio of 390, significantly higher than the tech sector average of 42, indicating that the stock is expensive during this transition period [5]. Comparison with AI Stocks - AI stocks, particularly Micron Technology and Taiwan Semiconductor Manufacturing Co. (TSMC), are highlighted as better investment options due to their strong market positions and demand for AI infrastructure [2][6]. - TSMC holds approximately 70% of the processor manufacturing market and produces advanced AI chips, while Micron specializes in memory chips essential for AI data centers [6]. - The current shortage of memory chips is described as unprecedented, indicating strong demand for Micron's products [6].