Ross Gerber Says Tesla (TSLA) Is ‘Almost Like a Meme Stock’

On By Littum

We recently published a list of Wall Street is focusing on these 10 AI stocks as the New Year begins. In this article, we will take a look at where Tesla, Inc. (NASDAQ:TSLA) faces other stocks Wall Street is focusing on as the new year begins.

Dan Niles, founder of Niles Investment Management, recently said on a program on CNBC that a slowdown in spending could be a “big problem” for big AI players in 2025. The analyst highlighted that when Satya Nadella was asked if his company faced a chip shortage, the head of the Redmond software giant said his company was facing a power shortage, not a chip shortage. Niles said this goes against the claims of Jensen Huang, who has pointed to an unprecedented demand for AI chips.

“If you look at the Magnificent 7 (except one) … they’re trading at a low 30 PE. The S&P 500 is trading at a 25 PE, but if you look at the mid-cap and small-cap stocks that people have forgotten because they don’t really are AI plays, they are trading at about 19 to 20 times. They have underperformed until the middle of the year, when the performance picked up. If you look at stocks since June 30, is The S&P is basically up about 8%, but the NASDAQ 100 is up 7%, actually, after only being up 1% in the first six months of the year this is expanding, and I think with the new administration really focusing on domestic manufacturing, deregulation, etc., it’s going to benefit the small-mid names more than the names in the S&P 500,” said Niles.

Niles said stocks could face a “tough” time in the first quarter amid the changing stance of the Fed.

“The Fed finally admitted that inflation was not temporary. I think that could have been the wakeup call, and so I think Q1 could be a really tough time for a lot of the market as a whole, but also for a lot of of the mega-cap stocks. As we have to price in the fact that the FED might, you know, they might pause or they might even raise next year, which I think is a 50/50 shot on if they cutting, raising or holding.”

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For this article, we’ve selected 10 AI stocks analysts are talking about heading into 2025. For each company, we’ve listed its number of hedge fund investors. Why are we interested in the stocks that hedge funds are piling into? The reason is simple: our research has shown that we can outperform the market by mimicking the best stock picks of the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).