Comparing Tesla and Alphabet: Which AI Stock Will Outperform by 2026?

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Tesla and Alphabet Stock Surge Amid AI Hype

Tesla (NASDAQ: TSLA) and Alphabet (NASDAQ: GOOGL) have reported significant stock gains due to investor optimism surrounding their AI initiatives. Tesla’s stock has risen over 45% in the past six months, while Alphabet’s shares have surged nearly 70%, bringing its market cap close to $4 trillion.

In the first half of 2023, Tesla’s revenue fell 10.6% to $41.8 billion, with a notable 40% decline in operating income, while Alphabet’s third-quarter revenue grew 16% to $102.3 billion, driven by improvements in Google Cloud and its advertising services. Tesla’s current price-to-earnings ratio exceeds 300, compared to Alphabet’s ratio of 31, suggesting Alphabet may represent a more attractive investment option as both companies prepare for significant AI-driven growth in 2026 and beyond.

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