Which Elon Musk-Backed Stocks to Buy Before They Hit $20 Trillion?

According to Wall Street analysts, two tech giants are positioned to become the most valuable companies ever created. Elon Musk and other industry experts believe Tesla and Nvidia could each reach valuations previously thought impossible—Tesla potentially hitting $25 trillion and Nvidia reaching $20 trillion. But for investors considering where to deploy capital, understanding the fundamentals behind these projections is crucial. Here’s what you need to know about the most compelling stocks to buy in today’s AI-dominated market landscape.

Nvidia and Tesla have become central to the artificial intelligence revolution for different reasons. Nvidia supplies the essential computing infrastructure powering AI systems worldwide—the GPUs and accelerated computing platforms that every major AI lab depends on. Tesla, meanwhile, is pioneering physical AI through autonomous driving technology and humanoid robots. These aren’t speculative bets; they’re companies currently generating massive revenues while pursuing exponentially larger opportunities. The question isn’t whether these companies matter to the future of AI, but whether their valuations offer attractive entry points for investors today.

Nvidia’s Clear Path to Dominance: Why the GPU Leader Remains the Safer AI Stock to Buy

Nvidia’s position in AI infrastructure is nearly unassailable. The company controls approximately 85% of the AI accelerator market—a level of dominance rarely seen in competitive tech industries. This isn’t just about having the best product; it’s about having a complete ecosystem that competitors struggle to replicate.

The company’s “full-stack” approach means customers get GPUs, supporting hardware, and optimized software from a single supplier. This dramatically reduces the total cost of ownership compared to assembling components from multiple vendors. While rivals offer cheaper individual chips, companies consistently choose Nvidia because the integrated solution simply works better and costs less overall when you account for all integration and development expenses.

The growth runway remains enormous. Grand View Research forecasts data center GPU sales will expand at 36% annually through 2033. Nvidia’s data center revenue is expected to match or exceed this growth rate, while Wall Street estimates the company’s earnings will increase 38% annually over the next three years. At a current valuation of 46 times forward earnings, this growth rate makes the price quite reasonable—perhaps even conservative.

I/O Fund analyst Beth Kindig’s projection that Nvidia could reach a $20 trillion valuation by 2030 implies 340% upside from current levels. The company would need to maintain its market dominance and execute flawlessly on new computing architectures, but the trajectory appears achievable. Even skeptics who think 2030 is too aggressive acknowledge that $20 trillion is plausible by 2035. For risk-averse investors seeking AI exposure through fundamentally strong companies, stocks to buy like Nvidia offer a compelling risk-reward proposition because the business model is proven and the growth catalysts are clear.

Tesla and Elon Musk’s Physical AI Bet: A $25 Trillion Opportunity With Execution Risks

The investment narrative around Tesla has fundamentally shifted. The company’s core electric vehicle business faces headwinds—it recently lost its title as the world’s leading EV manufacturer to Chinese automaker BYD. But investors have largely disregarded these setbacks because the real opportunity lies in physical AI, a broader category encompassing autonomous vehicles and humanoid robots.

Tesla’s full self-driving (FSD) software is already available in the United States and expected to launch in Europe and China this month pending regulatory approval. The company plans to monetize FSD through subscription revenue and by operating autonomous ride-sharing services—competing directly with Waymo, which already runs robotaxi operations in five U.S. cities. Tesla intends to expand to seven cities in 2026 and believes its vision-only approach will enable rapid, cost-effective scaling.

Beyond autonomous vehicles, Tesla is developing Optimus, a humanoid robot that Elon Musk argues could become the company’s most valuable product. The global robotaxi market is projected by Grand View Research to expand 99% annually through 2033. Morgan Stanley estimates autonomous vehicle sales could reach $4 trillion annually by 2040, while humanoid robot sales are forecast to grow 54% yearly through 2035. If Tesla captures meaningful share in these markets, the company’s valuation multiples could expand dramatically.

Elon Musk’s assertion that Tesla could eventually be worth $25 trillion translates to roughly 1,560% upside from current valuation levels. That projection assumes successful execution across multiple complex technical challenges and regulatory hurdles. The opportunity is genuine and potentially transformational. Yet this is where the risk emerges: Tesla must successfully commercialize physical AI products at scale, compete against well-funded rivals like Waymo and others, and execute perfectly in markets that don’t yet exist at meaningful scale.

Why Now Is the Time to Decide: Balancing Stability Against Explosive Growth Potential

The choice between these stocks to buy illustrates a fundamental investment principle: higher expected returns demand acceptance of higher execution risk. Nvidia offers predictable, technology-driven growth with a fortress balance sheet and proven business model. The company is already the dominant force in AI infrastructure, and earnings growth appears sustainable. The 340% return potential is attractive precisely because the path to achieving it is tangible and measurable.

Tesla presents a starkly different profile. If the company successfully deploys FSD commercially and scales Optimus production, the $25 trillion valuation becomes defensible. But if investors lose conviction in the physical AI thesis—or if competitors prove more effective at commercialization—Tesla could underperform dramatically. In a bear case where the market reprices Tesla as a struggling automotive manufacturer, valuations could contract by 90% or more.

For diversified portfolios, both companies merit consideration for different reasons. Nvidia serves as a core AI infrastructure holding with predictable growth catalysts. Tesla offers leveraged exposure to physical AI commercialization for investors willing to accept higher uncertainty. The key is sizing positions appropriately: a smaller allocation to Tesla acknowledges both the explosive upside potential and the execution risks, while a Nvidia position can form the core of an AI-focused portfolio.

The timing question matters less than understanding what you’re buying. These aren’t companies to buy lightly or as lottery tickets. Whether you prioritize Nvidia’s steady dominance or Elon Musk’s ambitious physical AI vision, conviction in the underlying thesis—and realistic expectations about probability of success—should drive the decision. The next several years will determine whether these $20-25 trillion valuations were visionary or fantasy.