<div id="readability-page-1">2025 is coming to an end with uncertainty having gripped the markets lately. Fears of an AI bubble are fueling the concerns, while a mix of conflicting economic signals, stretched valuations, and an ongoing, complicated geopolitical backdrop have all left investors wondering whether the bull market is set to continue in 2026.<h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential</li></ul> But never one to shy away from risk, Cathie Wood believes that against such a jittery backdrop, plenty of opportunities could open up for investors. &#34;I have never seen more fear about innovation than I do now,&#34; the Ark Invest CEO recently said. &#34;And that's why, in April, when we went through tariff turmoil, a lot of the AI stocks got hit. And it's why, when DeepSeek came out from China, a lot of the AI-related stocks got hit. So we are not in a hype cycle, and I'm very comfortable here. I think this is a good place. A wall of worry makes for a very strong and, from my point of view, durable bull market, which means you buy the dip. You don't chase momentum; you buy the dip because you get these opportunities.&#34; While Wood strikes a bullish tone, that's not to say she is just randomly picking up any AI name out there. Both Tesla (NASDAQ:TSLA) and CoreWeave (NASDAQ:CRWV) are among the AI stocks residing in the Ark portfolio, but in recent times Wood has been offloading one of these while loading up on the other. Do the Street's top analysts agree with the innovation-focused CEO's latest moves? We've opened up the TipRanks database to find out. Tesla You wouldn't really dare call any other automaker an AI stock, but Tesla is obviously a different beast. It's an argument that has been debated on Wall Street for years – is the Elon Musk-led firm a tech play rather than merely a seller of cars with some extra trimmings? It's certainly – and famously – not valued as one. The bulls will say it deserves to have what many consider to be a ridiculous valuation due to its software stack, data advantage, and ambitions in autonomy, robotics, and energy, all providing evidence that the car business is really just a gateway to a much broader technology platform. Skeptics counter that by simply pointing out that the bulk of revenue and cash flow still comes from selling vehicles, leaving Tesla exposed to the same pressures and competitive dynamics as the rest of the auto industry. And on that side, it has definitely been a rocky year. The first half of 2025 saw a sharp decline in car sales, and although Q3 marked a rebound, that was largely driven by the Trump administration's decision to end the $7,500 federal EV tax credit at the end of September. Yet, that has mattered little to investors, it seems. While the stock took a beating earlier in the year, it recently surged to all-time highs, with the market banking on the success of the company's autonomous endeavors. As for Cathie Wood, she has never been shy about her Tesla conviction. Earlier this year, she went as far as saying that if she could own just one stock, it would be TSLA. But after the stock's run, that unwavering enthusiasm may be cooling. Between November 21 and December 18, Wood trimmed ~$143 million worth of Tesla shares via her ARKK and ARKW ETFs. <blockquote> Meanwhile, when assessing TSLA's value proposition, Morgan Stanley's Andrew Percoco – an analyst ranked among the top 3% on Wall Street – believes a more cautious stance is warranted at this point. </blockquote> &#34;Tesla is a clear global leader in electric vehicles, manufacturing, renewable energy, and real world AI and thus deserving of a premium valuation. However, high expectations on the latter have brought the stock closer to fair valuation. While it is well understood that Tesla is more than an auto manufacturer, we expect a choppy trading environment for the TSLA shares over the next 12 months, as we see downside to estimates, while the catalysts for its non-auto businesses appear priced at current levels, driving our EW rating,&#34; the 5-star analyst said. That Equal-weight (i.e., Neutral) rating is backed by a $425 price target, implying TSLA shares will fall by ~12% in the months ahead. (To watch Percoco's track record, click here) The broader Street largely echoes that cautious tone. Tesla currently carries a Hold consensus rating, with analysts split almost evenly between 11 Buys and 12 Holds, alongside 9 Sells. Meanwhile, the average price target of $382.87 points to a 20% downside over the next 12 months. (See TSLA stock forecast) </div>

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Cathie Wood, CEO of Ark Invest, is adjusting her AI stock portfolio amidst market uncertainty. She has reduced her Tesla holdings by ~$143 million, while increasing her stake in CoreWeave. Despite Tesla's recent stock surge, Wood's enthusiasm is cooling, aligning with analysts' cautious outlook. Morgan Stanley's Andrew Percoco rates Tesla as Neutral, predicting a 12% price drop. The broader market shares this cautious sentiment, with Tesla holding a consensus rating of Hold.

- The market faces uncertainty as fears of an AI bubble and conflicting economic signals have emerged, leaving investors questioning the bull market's sustainability into 2026.  
- Despite this, Cathie Wood expresses optimism for innovation opportunities and suggests that buying during market dips could yield strong returns, though she has recently reduced her Tesla holdings.  
- Analyst sentiment on Tesla is cautious, with the stock receiving a Hold consensus rating and a projected price target indicating a potential downside over the next year.

Tesla or CoreWeave: Cathie Wood Slashes One Top AI Stock While Boosting Another