We recently published a list of 10 Trending AI Stocks to Watch in December. In this article, we are going to take a look at where Qorvo Inc. (NASDAQ:QRVO) stands against other trending AI stocks to watch in December.
Jared Cohen, Goldman Sachs president of global affairs, co-head of the Goldman Sachs Global Institute, said while talking to CNBC in a latest program that amid rising data center-driven energy demand because of AI, the US would need to collaborate with other countries via “diplomacy.”
“If you look at data centers for cloud workloads versus data centers for AI workloads, data centers for AI workloads require ultra-high density. They need a concentrated power source, and so intermittent power like wind and solar doesn’t fit the bill. You need base load power, so I think nuclear, coal, and natural gas are necessary, and we have plenty of that in the US. The problem is we can’t transport it from where it is through multiple jurisdictions because of the ‘not in my backyard’ issue. So, the US is going to need some kind of overflow option if it wants to continue leading in this space. There’s not a single geography that I would say represents a panacea to this problem.”
Answering a question about whether the return to relatively cheaper and reliable energy sources like coal could satisfy the AI-driven energy demand, the analyst said the US would still need to look beyond just relying on its own sources because the need for power is huge.
“We’re going to have to probably bring another 35-plus gigawatts of power online relative to the 17 gigawatts of power that are already online feeding these data centers in just the next couple of years. That’s not enough, that’s not enough time. So, you know, the US is going to continue to lead in the space, but it’s not going to be able to lead on its own.”
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Elon’s Bet on Trump Will Change ‘Whole Landscape’ for Tesla (TSLA)
Dan Ives of Wedbush said while talking to Schwab Network in a latest program that Elon Musk’s “bet” on Trump will change the entire landscape for his EV company.
“Musk betting on Trump is going to change the whole landscape for Tesla Inc (NASDAQ:TSLA), autonomous AI, and regulation. I think while that gets accelerated, EV tax credits will probably get pulled in January, which is negative for the industry and negative for Detroit. Remember, Musk, when it came to the Biden administration, even Obama, was on the outside looking in. Right now, the Trump administration has a huge seat at the table, and it’s going to be very important when it comes to China tariffs. A lot of those discussions are almost like an AI ambassador. Look, I believe AI alone, the autonomous piece, is worth a trillion dollars alone for Tesla Inc (NASDAQ:TSLA).”
Tesla Inc (NASDAQ:TSLA) product lineup is showing signs of stagnation, with over 95% of sales still coming from the Model 3 and Model Y. Meanwhile, competitors are rolling out more advanced models. Even Rivian’s CEO suggested Tesla Inc (NASDAQ:TSLA) could be nearing market saturation for these models. According to Reuters, Tesla’s market share in Europe is slipping as legacy automakers like BMW post stronger sales. Chinese competitor BYD is also gaining ground in Europe, despite talk of tariffs.
The Tesla Inc (NASDAQ:TSLA) robotaxi event was short on details. Notably absent was the discussion of a “more affordable” model that Musk had previously mentioned to boost confidence in Tesla’s vehicle sales growth outlook.
What about the $30,000 price tag claim?
Musk has indicated that the Cybercab will have a production cost of approximately $30,000. Operating within the robotaxi fleet is projected to cost around $0.20 per mile. With a production cost of $30,000, the retail price of the Cybercab is likely to exceed this figure. For instance, if the Cybercab is priced at $30,000 per unit, that translates to $15,000 per seat. In contrast, the average price per passenger seat in Tesla Inc (NASDAQ:TSLA)’s most affordable long-range RWD Model 3—factoring in full self-driving (FSD) licensing—is under $10,000 ($29,990 post-incentive vehicle price plus $8,000 for the FSD license, divided by four passenger seats). Regarding operational costs, while the Cybercab is expected to cost $0.20 per mile, charging the Model 3 is estimated at under $0.10 per mile, leaving a significant margin to cover maintenance and downtime.
Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q3 2024 investor letter:
“The largest relative detractors during the quarter were Apple, Airbnb, and Tesla (not owned). We’ve spoken at length about our rationale for not owning Tesla, Inc. (NASDAQ:TSLA). In short, the market seems to be pricing in a lot of positive optionality for this company in the near-to-intermediate term (and particularly a fully autonomous fleet of electric vehicles in the medium term). What exists today is an automobile manufacturer limited to the higher-income segment that is increasingly challenged to sell vehicles when interest rates are not zero. We continue to question the company’s long-term growth profile and governance.”
Overall, TSLA ranks 6th on our list of trending AI stocks to watch in December. While we acknowledge the potential of TSLA, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about thecheapest AI stock.
