Elon Musk’s AI Power Play: Why Google & Nvidia Are His Top Picks for 2026

Tech titan Elon Musk just placed his bets—and Wall Street's scrambling to keep up. The Tesla CEO singled out Google and Nvidia as the AI sector's prime investments during a recent earnings call, sending both stocks into the stratosphere.

Why these two? Google's DeepMind breakthroughs are eating competitors' lunch, while Nvidia's chips power nearly every major AI model. "They're the picks and shovels of the gold rush," Musk quipped—before adding his trademark caveat about "civilizational risk."

Meanwhile, hedge funds are frantically rebalancing portfolios. Because nothing says 'prudent investing' like chasing the same hype cycle that vaporized $2T in crypto valuations three years ago.

TLDR

• Elon Musk identified Google and Nvidia as attractive investments during a November 30 podcast with Indian entrepreneur Nikhil Kamath
• Musk praised Google’s AI groundwork and called Nvidia’s AI chip dominance “obvious” for future value creation
• Alphabet stock surged 16% in November after strong Q3 earnings and Warren Buffett adding it to Berkshire Hathaway’s portfolio
• Google released an updated Gemini chatbot and Meta reportedly entered negotiations to purchase Google’s AI chips
• Nvidia stock dropped 15% in November due to high valuation concerns but remains up 37% year-to-date with a forward P/E of 23

Elon Musk shared his investment views on Google and Nvidia during a November 30 podcast appearance. The Tesla and SpaceX CEO identified both companies as strong bets for the future despite admitting he doesn’t actively invest in stocks.

Musk appeared on the “People by WTF” podcast hosted by Nikhil Kamath, co-founder of Indian financial services firm Zerodha. During the conversation, he singled out two Magnificent 7 stocks as particularly valuable investments.

“I don’t really buy stocks,” Musk explained on the podcast. “I’m not like an investor. I don’t really look for things to invest in.”

Despite his hands-off approach to investing, Musk highlighted specific companies he believes will drive future value. He pointed to AI and robotics as key sectors that will dominate business output.

“Google is going to be pretty valuable in the future,” Musk said. “They’ve laid the groundwork for an immense amount of value creation from an AI standpoint.”

Google operates under parent company Alphabet, which also owns YouTube and other digital properties. The search and cloud computing giant has been making major moves in artificial intelligence development.

Musk’s second pick was Nvidia, the leading manufacturer of AI chips. “Nvidia is obvious at this point,” he told Kamath during their discussion.

He explained his reasoning for both selections with a focus on technology sectors. “There’s an argument that companies that do AI and robotics, and maybe spaceflight, are going to be overwhelmingly almost all of the value,” Musk said.

Alphabet’s Recent Performance

Alphabet stock jumped 16% in November, making it one of the best performers on the Nasdaq Composite index. The surge followed strong third-quarter results that showed earnings up 35% and beat analyst estimates.

Alphabet Inc., GOOGL

Warren Buffett’s Berkshire Hathaway added Alphabet to its investment portfolio during the third quarter. This MOVE provided another boost to the stock’s momentum.

Google released its latest Gemini chatbot version, positioning itself to compete more directly with OpenAI’s ChatGPT. Reports also emerged that Meta Platforms entered negotiations with Google to purchase its Tensor Processing Units for AI applications.

Alphabet stock has climbed 66% year-to-date. The company trades at a price-to-earnings ratio of 31, which investors consider relatively cheap compared to other Magnificent 7 stocks.

Nvidia’s Valuation Shift

Nvidia stock fell 15% in November after concerns about its high valuation. The pullback brought its forward price-to-earnings ratio down to 23, below Alphabet’s current valuation.

NVIDIA Corporation, NVDA

The AI chip Maker remains up 37% for the year. Musk emphasized that the output from AI and robotics businesses would eventually “dwarf everything else” in terms of economic value.