Recently, three M&A possibilities were discussed for automation stocks in the coming year. These were companies involved in automation that might be acquired in 2024.
Changing gears slightly, three automation stocks could be destined to reshape the way we work in the future. Let’s examine three automation stocks to buy that are changing the future of work.
Microsoft (MSFT)
First, one could argue Nvidia (NASDAQ:NVDA) is the top AI stock heading into 2024.
However, Microsoft (NASDAQ:MSFT) isn’t too far behind. In fact, CEO Satya Nadella focuses on moving Microsoft’s AI agenda forward.
Accordingly, the company has integrated its AI assistant Copilot into most of its products, operating systems, and apps.
Notably, one of the concerns about AI and the future of work is that automation will reduce jobs. McKinsey estimates that 30% of tasks at U.S. companies could be automated by 2030. However, an MIT study shows that 80% of the jobs today weren’t around in 1940. Perhaps, it’s safe to assume better, higher-paying ones will replace many jobs lost. Time will tell.
Also, the jobs might be more enjoyable by eliminating the amount of time spent on paperwork. Also, it frees up time for learning.
“This new generation of AI will remove the drudgery of work and unleash creativity,” said Satya Nadella, Chairman and CEO, Microsoft. “There’s an enormous opportunity for AI-powered tools to help alleviate digital debt, build AI aptitude, and empower employees.”
Hence, MSFT’s OpenAI combined with its products of Azure, Microsoft 365, Windows, and LinkedIn make it ideally situated to reshape work in the future.
Apple (AAPL)
Of the Magnificent 7, Apple (NASDAQ:AAPL) has been the quietest regarding AI and automation. However, that’s likely by design. The company is more interested in providing the best user experience than catering to the tech crowd.
“Apple is obviously a well-resourced tech company capable of competing in any arena it sets its mind to do so,” AI Business reported comments from an October interview with UPenn School of Engineering Professor Michael Kearns. “They already have a large and stellar group of AI scientists, so I think the main question is how long it takes and how it fits with their current business model — which is quite different from those of their competitors in generative AI.”
As it relates to automation, households could benefit from Apple utilizing its tech innovation. While everyone’s focusing on AI and automation at work, households would benefit significantly from increased automation.
Alphabet (GOOGL, GOOG)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is reorganizing its Google ad sales unit to reduce costs. But, it’s also automating parts of the ad sales process for large companies. It’s unknown if or how many 30,000-odd employees in its ad sales unit will be reassigned or laid off.
Google uses machine learning to help its customers buy ads on its various services, including YouTube. The process automates ad-buying and ultimately leads to redundancies. In the near term, this is an example of the dark side of automation. But in the long run, new jobs should be created to help Google analyze and uncover new opportunities.
In July 2021, Alphabet created Intrinsic, a software company focused on industrial robotics.
“Intrinsic is working to unlock the creative and economic potential of industrial robotics for millions more businesses, entrepreneurs, and developers. We’re developing software tools designed to make industrial robots (which are used to make everything from solar panels to cars) easier to use, less costly and more flexible, so that more people can use them to make new products, businesses and services,” Intrinsic CEO Wendy Tan White wrote on Google’s Moonshot Factory blog.
Interestingly, a May 2023 article from Forbes contributor Andre Wegner — who writes about the future of manufacturing — believes Intrinsic hasn’t hit a bullseye with its first product, Flowstate. It theoretically provides robotic programming for anyone.
While Alphabet’s use of automation remains hit or miss, it is the only Magnificent 7 “trading below its intrinsic value.” That’s got to count for something.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
