We recently published a list Top 10 AI shares that now dominate the market. In this article we will see where Tesla, Inc. (Nasdaq: TSLA) stands against other top AI shares that now dominate the market.
The attention is slowly shifting from our chip stocks to what analysts regard as the next large AI game: software. Enthusiasm of investors started taking semiconductor shares due to tariff-controlled volatility and the rise of cheaper AI models from China’s Deepseek. The transition from the AI chips now paves the way for the second phase of the innovation cycle, where software companies will earn with the breakthrough of AI.
Also read: 10 Hot AI News updates Analysts are monitoring and 10 AI shares with a high potential to view
“The second phase of the innovation cycle is when people start using products and that is when the software companies are paid … We are now starting to see the predominance of the software area of the comparison.”
Previously, software startups such as Harvey were rejected by investors in Silicon Valley. Investors took these software companies slightly and said as purely wrappers around the models of OpenAi. Now, however, the story is shifting and these AI wrappers are becoming quite popular today.
“The perception of the market of companies like us … was that they are GPT wrappers, which refer to a mocking term that was used to suggest the re -packaging of the OpenAI models. If investors ‘go into something’, he added, “it had to be in OpenAI or anthropic.”
This is what another investor has to say:
“Just like after the iPhone was launched, there were millions of new mobile apps,” said Mignano, an investor in the AI Notetaking Service Granola, who uses Technology from OpenAI and Anthropic. “Now with AI and LLMS there will be millions of new AI products.”
Deepseek has also played his part in leading the shift from chip stocks to software and similar AI playback.
“Investors are looking for the following stories from three to five years … those companies that will benefit from what Nvidia has already done.”
For this article we have selected AI shares by going through news items, stock analysis and press releases. These shares are also popular with hedge funds. The data from the Hedgefonds are from Q4 2024.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
