Tesla CEO Elon Musk Names Google and Nvidia as Top AI Investment Picks

TLDR

• Elon Musk identified Google and Nvidia as attractive investments during a November 30 podcast with Indian entrepreneur Nikhil Kamath
• Musk praised Google’s AI groundwork and called Nvidia’s AI chip dominance “obvious” for future value creation
• Alphabet stock surged 16% in November after strong Q3 earnings and Warren Buffett adding it to Berkshire Hathaway’s portfolio
• Google released an updated Gemini chatbot and Meta reportedly entered negotiations to purchase Google’s AI chips
• Nvidia stock dropped 15% in November due to high valuation concerns but remains up 37% year-to-date with a forward P/E of 23

Elon Musk shared his investment views on Google and Nvidia during a November 30 podcast appearance. The Tesla and SpaceX CEO identified both companies as strong bets for the future despite admitting he doesn’t actively invest in stocks.

Musk appeared on the “People by WTF” podcast hosted by Nikhil Kamath, co-founder of Indian financial services firm Zerodha. During the conversation, he singled out two Magnificent 7 stocks as particularly valuable investments.

Despite his hands-off approach to investing, Musk highlighted specific companies he believes will drive future value. He pointed to AI and robotics as key sectors that will dominate business output.

Google operates under parent company Alphabet, which also owns YouTube and other digital properties. The search and cloud computing giant has been making major moves in artificial intelligence development.

Alphabet’s Recent Performance

Alphabet stock jumped 16% in November, making it one of the best performers on the Nasdaq Composite index. The surge followed strong third-quarter results that showed earnings up 35% and beat analyst estimates.

Alphabet Inc., GOOGL

Warren Buffett’s Berkshire Hathaway added Alphabet to its investment portfolio during the third quarter. This move provided another boost to the stock’s momentum.

Google released its latest Gemini chatbot version, positioning itself to compete more directly with OpenAI’s ChatGPT. Reports also emerged that Meta Platforms entered negotiations with Google to purchase its Tensor Processing Units for AI applications.

Alphabet stock has climbed 66% year-to-date. The company trades at a price-to-earnings ratio of 31, which investors consider relatively cheap compared to other Magnificent 7 stocks.

Nvidia’s Valuation Shift

Nvidia stock fell 15% in November after concerns about its high valuation. The pullback brought its forward price-to-earnings ratio down to 23, below Alphabet’s current valuation.

NVIDIA Corporation, NVDA

The AI chip maker remains up 37% for the year. Musk emphasized that the output from AI and robotics businesses would eventually “dwarf everything else” in terms of economic value.

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