Investors began paying more attention to artificial intelligence (AI) chip stocks after the recent earnings report from Nvidia. The company's stock surged 25% as the company cemented its lead in the AI chip space. Consequently, its market cap has risen to the $1 trillion range.

Nonetheless, the focus on Nvidia could distract investors from a key opportunity in Tesla (NASDAQ: TSLA). Indeed, Nvidia also has developed technology in the automotive space. But if autonomous driving takes off, Tesla could not only dominate an essential segment in AI but also become the largest semiconductor stock. 

Admittedly, referring to Tesla as a chip stock may appear baffling. Given its success in electric vehicles and battery technology, Tesla looks like an electric car stock or, more broadly, an industrial stock.

Continue reading

Source Fool.com