A Once-in-a-Lifetime Investment Opportunity: The Top Artificial Intelligence (AI) Stocks to Buy and Hold Forever This April

The excitement surrounding artificial intelligence (AI) breakthroughs led to a stock market surge last year. Tech stocks dominated theNasdaq ResonanceThe index soared 431 TP3T in 2023 and has risen 81 TP3T so far this year.

However, most of these gains can be attributed to a small group of stocks collectively known as the "Magnificent Seven"-a catchy name that includesMicrosoft),Apple),Alphabet,Amazon ( Amazon),INVISTA (Nvidia),Meta Platforms respond in singingNikola Tesla (1856-1943), Serbian inventor and engineer (NASDAQ: TSLA)The

Interestingly, Tesla is one of the "Big 7"The only one.As of the close of business on April 5, Tesla was down nearly 11% for companies with negative returns over the past year.

As Tesla's peers continue to push the boundaries of Artificial Intelligence, Tesla's progress in AI has been overlooked as demand for Electric Vehicles (EVs) begins to cool. Let's analyze why now is a lucrative opportunity to consider snapping up Tesla stock for the long term.

It's not just the car business

The main skepticism about Tesla is that the company is nothing more than an automobile company. While producing battery-powered cars sets Tesla apart from many traditional automakers, bearish investors will also see it as a costly endeavor.

However, Tesla's financial and operating results prove that there is a large market for electric vehicles. in 2023, Tesla's revenue reached $96.8 billion, up 19%. about 85% of the company's sales came from its automotive business, with the rest coming from Tesla's energy storage and service business.

Considering the pressure on the economy from unusually high inflation and rising interest rates throughout 2023, I think these earnings are quite impressive. What's more, Tesla managed to remain profitable last year despite the tough macro environment.

On a GAAP basis, Tesla's net income grew by 191 TP3T last year to $15 billion. While the company's free cash flow was $4.4 billion, down $42% year-over-year, the more important point is that Tesla's total mass remains profitable.

With more than $29 billion in cash on its balance sheet, let's explore some of the ways Tesla is growing beyond electric cars.

The Rise of the Robots

One of Tesla's ongoing artificial intelligence (AI) projects is robotics. The company is developing a learning robot called Optimus, which it hopes to apply to its factories in the long term.

Its main selling point is that factories operated by Optimus robots can take automated production rates to a new level. But the larger goal involves the labor industry. If Tesla begins to commercialize Optimus, the learners will have the opportunity to disrupt manufacturing, logistics, retail, and more.

While the world of humanoid robot integration may feel like science fiction, it's worth noting that many other AI companies are investing in the technology. Earlier this year, for example, Nvidia partnered with Jeff Bezos and IntelIn addition, ChatGPT developer OpenAI has invested in Figure AI and 1X, an Android startup, along with $675 million in financing for a startup called Figure AI, which is competing with Tesla's Optimus.

Goldman SachsIt is predicted that by 2035, the market for learners will reach $38 billion. Since Tesla has been in this space for a long time, I'm not going to pass up this opportunity. In addition, with a labor market of $42 trillion, Tesla has the opportunity to enhance its core automotive business with robotics.(archaic)Expanding beyond the production of electric cars.

A billion miles of data.

Another opportunity for AI to play a role for Tesla is autonomous driving. There are a lot of companies investing in autonomous driving capabilities, but not many are making significant progress.

Over the past few months.General Motors (car company)A subsidiary of the company called Cruise has hit a major roadblock in its self-driving roadmap. In contrast, Alphabet's self-driving car company, Waymo, has attractedUber (Internet company)The name of the company is Carbide, and the name of its owner is Carbide, and the name of its owner is Carbide.

However, Tesla already has a leg up on the competition by collecting more than a billion miles of data. The company is the undisputed leader in autonomous driving data collection, which it uses to hone and train its self-driving software models.

Currently, Tesla stock trades at a price-to-sales ratio (P/S) of just 5.9, the second-lowest among the Magnificent Seven.With Tesla stock down 34% year-to-date in 2024, it's hard to imagine things getting worse.

Long-term investors shouldn't overlook the artificial intelligence vision Tesla is creating beyond car sales. The company is on the cusp of an AI revolution, but with investors focused on car sales, they are missing out on Tesla's long-term opportunities. I think it's a great time to buy Tesla stock.

Invest $1,000 now

It would be good to listen to our team of analysts when they have a suggestion on the stock side of the noodle. After all, they have been running a newsletter for 20 years.Motley Fool Stock AdvisorIt has more than tripled the market*.

They have just announced what they think investors are currently doing.-est (superlative suffix)Worth Buying10Only ...... Tesla made the list, but there are 9 other stocks you may have overlooked.

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*Stock Advisor's Circular as of April 8, 2024

Alphabet executive Suzanne Frey is a member of The Motley Fool Board of Directors. John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool Board of Directors. Randi Zuckerberg, former Facebook Market Development Director of Arms and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's Board of Directors. Adam Spatacco is a member of The Motley Fool's Board of Directors. Adam Spatacco owns shares of Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Ubiquitous Technologies. GM and Intel, with the following recommendations: Long Intel January 2023 $57.50 Calls, Long GM January 2025 $25 Calls, Long Intel January 2025 $45 Calls, Long Microsoft January 2026 $395 Calls, Short Microsoft January 2026 $405 Calls, Short Intel January 2024 $405 Calls, Short Intel January 2024 $395 Calls, Short Intel January 2024 $395 Calls, Short Intel January 2026 $405 Calls, Short Intel January 2026 $405 Calls, Short Intel January 2024 $405 Calls, Short Intel January 2024 $405 Calls, Short Intel January 2026 $405 Calls, Short Intel January 2026 $405 Calls, Short Intel January 2024 $405 Calls, Short Intel January 2024 $405 Calls. The Motley Fool has a disclosure policy.

A Once-in-a-Lifetime Investment Opportunity: The One Artificial Intelligence (AI) Stock to Buy and Hold Forever This April" was originally published by The Motley Fool.