Expected Increase of 646% in Leading Robinhood Asset, Predicted by Notable Financial Advisor (not Nvidia or Apple that tops the list!)
In a surprising shift, Tesla has claimed the top spot on Robinhood's "100 Most Popular" list, surpassing Apple and Nvidia. This shift, announced on June 23, reflects the growing interest among retail investors in the tech and AI sectors.
Robinhood, an online brokerage platform that has gained popularity for its features like fractional-share purchases, zero commission fees, and free shares upon account funding, has seen a surge in retail trading momentum. This environment helps maintain high buy interest in Tesla and similar popular tech names.
Tesla's popularity on Robinhood is primarily due to its strong position as a tech and AI leader that captures retail investors’ enthusiasm for innovation and growth. The company's stalwart status within these themes remains highly attractive to retail traders, despite some bearish views and underperformance concerns in Q1 2025.
While Tesla's stock has increased about 50% since April 2025, this popularity might be less about near-term fundamentals and more about retail investors' optimism towards Tesla's long-term prospects in electric vehicles, autonomous driving, and AI integration.
Nvidia, another leader in the AI revolution, has seen its Hopper (H100) and Blackwell graphics processing units (GPUs) being widely used in AI-accelerated data centers. However, the company's hardware demand outpaces supply, allowing it to charge a premium and boost its gross margin.
Apple, a leader in innovation for over a decade, with products like the iPhone, iPad, Mac, and Apple Watch in high demand, has fallen to the No. 2 spot on Robinhood's "100 Most Popular" list. The company has the largest share-repurchase program among public companies, having bought back approximately $775 billion worth of its common stock since 2013.
Despite Tesla's rise, it's important to note that rarely do detachments between stock prices and underlying operating performance last for extended periods. Tesla's vehicle margin has plummeted as competition has picked up, and Musk has been promising Level 5 autonomy "next year" for 11 straight years, yet his company hasn't moved past Level 2 autonomy.
By 2029, Ark Invest believes 63% of Tesla's estimated $1.2 trillion in annual sales will come from AI-driven robotaxi operations. However, Tesla's robotaxi service is currently limited to just 10 vehicles and is geofenced to a small area in Austin since its technology remains unproven.
Tesla's stock is valued at 121 times estimated EPS in 2026, while most auto stocks trade at high-single-digit forward-earnings multiples. This suggests that while Tesla's stock may be overvalued in the short term, investors remain optimistic about its long-term potential in the electric vehicle and AI markets.
In conclusion, the rise of Tesla on Robinhood's "100 Most Popular" list is a testament to the growing interest in tech and AI stocks among retail investors. While Tesla's current valuation may be a cause for concern, its strong position in the electric vehicle and AI markets suggests that it could continue to be a popular choice among investors in the long term.
- The surge in Tesla's popularity on Robinhood, a platform known for its features like fractional-share purchases and zero commission fees, is primarily due to its strong position as a tech and AI leader, capturing retail investors’ enthusiasm for innovation and growth.
- While Tesla's stock has increased about 50% since April 2025, its popularity might be less about near-term fundamentals and more about retail investors' optimism towards Tesla's long-term prospects in electric vehicles, autonomous driving, and AI integration.
- Another leader in the AI revolution, Nvidia, has seen its hardware demand outpace supply, allowing it to charge a premium and boost its gross margin, due to its Hopper (H100) and Blackwell graphics processing units (GPUs) being widely used in AI-accelerated data centers.
- Despite Tesla's rise, it's important to note that investors remain optimistic about its long-term potential in the electric vehicle and AI markets, as Tesla's stock is valued at 121 times estimated EPS in 2026, while most auto stocks trade at high-single-digit forward-earnings multiples.
- By 2029, Ark Invest believes 63% of Tesla's estimated $1.2 trillion in annual sales will come from AI-driven robotaxi operations, but Tesla's robotaxi service is currently limited and unproven, with only 10 vehicles geofenced to a small area in Austin.
){kind=link}