Shares of Tesla (NASDAQ:TSLA | TSLA Price Prediction) have been picking up in recent sessions, now close to 13% in just three sessions. Undoubtedly, just because Space Exploration Technologies (NASDAQ:SPCX) is the new hot Elon Musk stock in town does not mean shares of the EV juggernaut are going to be stuck going sideways for a while longer.
With the ambitious Terafab, a foundry, and some very impressive next-generation AI chips on the horizon, questions linger as to whether Tesla shares can outrun SpaceX. Certainly, SpaceX had its IPO at a fairly hefty price, and the price of admission has only grown since.
In any case, Tesla’s transition from EV maker to robotics innovator and AI chip play is already well underway. And arguably, the company has already delivered some pretty impressive innovations early on in its shifting of the gears.
The AI5 chip is jaw-droppingly impressive
With the AI5 chip coming later in the year and the AI6 chip to follow, perhaps Tesla is the ultimate physical AI play and a more exciting bet than SpaceX, as Elon Musk looks to reduce its dependence on others as structural forces continue to make it tougher to get a spot on the production line. Given that AI demand could keep going from here, perhaps going down the route of a fab is the most logical thing to do, despite the price of the undertaking, the time it’ll take, and the very limited room for error.
In terms of breakthrough, the AI5 chip built on the 3nm process looks seriously impressive as the AI world moves into an inference inflection point. With reports of a 40x performance boost, it certainly feels like Tesla is the Magnificent Seven member with some of the most mouth-watering benchmarks.
Of course, it’s still early, but if the architecture behind the AI5 chip delivers, it’s not all too far-fetched to envision Tesla’s custom silicon stepping up to the plate as a serious challenger to Nvidia‘s (NASDAQ:NVDA) dominance. Of course, Nvidia’s not ignoring the opportunity at the edge either. Its RTX Spark superchip is every bit as impressive.
However, at the end of the day, Tesla’s chips are all about efficiency rather than raw power.
When it comes to the edge, perhaps surgical precision beats brute force. And with an army of Optimus humanoid robots on the way, as well as Tesla’s robotaxi opportunity, Tesla’s custom silicon is already going to find a home in some seriously impressive embodied AI products. Any way you look at it, it looks like Tesla is about to become a disruptor again as it beckons in the age of robotics.
The road ahead looks bright for Tesla as several catalysts align
With a massive data moat and a recent “40x performance boost” milestone in the books, it feels like Tesla might be the underestimated AI chip play that might just pull to the very front of the pack in this AI race. And with the 2nm AI6 chip to follow, count me as unsurprised if Tesla finds a way to silence the doubters as it finds huge success driving right into the age of robotics.
Full Self-Driving (FSD) v14 Lite has been released for Hardware 3 vehicles, And it finally feels like Tesla is finally delivering on its wild promises. The big question for investors moving forward is whether Optimus, Terafab, and the custom silicon roadmap will also be a success, even when the odds of failure are so high. It’s tough to say, but if you’re a Musk believer, I do think Tesla now looks a whole lot more interesting after its latest sudden surge.
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