Over the weekend, Tesla, SpaceX and xAI CEO Elon Musk said that while he doesn’t invest in stocks, he believes Alphabet and Nvidia are the companies best positioned to dominate the future economy, apart from his own companies.
Musk On Why He Avoids Traditional Investing
During the latest episode of Zerodha co-founder Nikhil Kamath's People by WTF podcast, Musk said that he is not a conventional investor.
"I don't really buy stocks… I don't have a portfolio or anything," he said. "I don’t look for things to invest in. I just try to build things. And then there happens to be stock of the company that I built."
AI, Robotics And Space: The Future Of Value Creation
When asked which companies outside his own he would consider, Musk pointed to sectors he believes will generate overwhelming economic value in the future.
"AI and robotics are gonna be very important," he explained, while later also adding "space flight" in the mix.
"There’s an argument that companies that do AI and robotics, and maybe space flight, are gonna be overwhelmingly all the value, almost all the value. So, just the output of goods and services from AI and robotics is so high that it will dwarf everything else," he stated.
Musk Explains Why Google And Nvidia Stand Out
Musk singled out Google and Nvidia as examples of companies leading the charge.
"I think Google is gonna be pretty valuable in the future. They've laid the groundwork for an immense amount of value creation from an AI standpoint," he said. On Nvidia, Musk added that they're "obvious."
Nvidia And Alphabet Crush Q3 Earnings Estimates
Earlier this month, Nvidia reported third-quarter revenue of $57.0 billion, a 62% increase compared with the same period last year, surpassing Wall Street's consensus estimate of $54.88 billion, according to Benzinga Pro data.
The chipmaker also reported earnings per share of $1.30, exceeding analysts' expectations of $1.25.
This marks Nvidia's 12th consecutive quarter of outperforming expectations, with both revenue and earnings per share beating forecasts.
The tech giant currently has a market cap of $4.3 trillion. Year-to-date, Nvidia shares are up by 27.96%.
In October, Alphabet, the parent company of Google, reported third-quarter revenue of $102.35 billion, surpassing analysts' expectations of $99.64 billion. The company also posted earnings of $2.87 per share, beating the estimated $2.33 per share.
Revenue rose 16% year-over-year, fueled by double-digit growth across all business segments.
Alphabet currently has a market cap of $3.8 trillion. Alphabet Class A shares have increased by 69.02% year-to-date, while Class shares have gained 67.93% during the same period.