Tesla lost its title as the world’s largest EV maker to Chinese company BYD, causing its stock to dip. While Tesla’s earnings and revenue shrank over the past year, AI companies Alphabet, Vertiv, and Micron Technology saw growth. Despite Tesla’s price drop, it’s still trading close to its all-time high.

In 2025, AI stocks like Vertiv, Alphabet, and Micron saw impressive share price growth and modest revenue gains. These AI companies outperformed Tesla in both revenue and profit growth. Despite their share price growth, AI stocks have reasonable valuations compared to Tesla.

For the cost of two Tesla shares, you could buy one share each of Alphabet, Micron Technology, and Vertiv. These AI companies outperformed Tesla in share price growth, revenue, and profit growth in 2025. Their forward P/E ratios suggest continued earnings growth, making them a better buy than Tesla.

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Read more at Nasdaq: Should You Forget Tesla and Buy 3 Artificial Intelligence (AI) Stocks Instead?