Riding the AI Wave: 4 Companies Redefining the Future of Automation Stocks

Written By Michael Gary Scott

It’s high time for investors to rethink their approach to AI and automation stocks. The prospect of crystallizing the mystique of market trends is seductive, but rather than chasing fabled visions, perhaps it’s time to embrace the mechanical insights of algorithms. In the dynamic world of artificial intelligence, progress is accelerating at a breathtaking pace, and the companies pioneering this change are not confined to the confines of overhyped tech enterprises.

While tech giants like Nvidia (NASDAQ:NVDA) are a logical draw, the robotics revolution extends far beyond the realm of semiconductors. From agriculture to tax preparation to pizza making, the road to finding the ideal AI stock traverses a multitude of industries. The origin of the broader robotics revolution may lie in computer technology, but its ultimate promise – enhanced productivity and efficiency – appeals universally across sectors. Below, we explore compelling automation stocks that merit attention.

The Next Revolution in Tax Prep: Intuit (INTU)

Person holding cellphone with logo of US financial software company Intuit Inc. (INTU) on screen in front of business webpage. Focus on phone display. Unmodified photo.

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Intuit (NASDAQ:INTU) is a leading provider of financial software, notably known for its tax-preparation programs. In essence, INTU stands as a compelling AI stock, offering practical solutions for the present and future. Intuit recently made headlines with the launch of its generative AI operating system, showcasing custom-trained financial language models. While the concept of taxes may not be uplifting, Intuit aims to simplify the process. As the gig economy burgeons, generating demand for tax considerations especially pertinent to gig workers, Intuit’s tax-oriented language model is predicted to witness significant uptake. As a result, Intuit emerges as an intriguing prospect among automation stocks.

Unveiling the AI Secret Sauce in Pizza Delivery: Domino’s Pizza (DPZ)

A tall Domino's Pizza (DPZ) sign stands in Eau Claire, Wisconsin.

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On the surface, Domino’s Pizza (NYSE:DPZ) may seem an unlikely AI stock due to its core business of pizza making. However, DPZ defies stereotypes, leveraging AI to predict when three billion pizzas are ready for delivery through its DXP platform. Embracing digital intelligence, Domino’s optimizes delivery routes, predicts customer demand, personalizes marketing campaigns, and employs the ExactOrder protocol to optimize inventory in stores. The resulting productivity boost, evident from the company’s robust three-year revenue growth rate of 13.3%, distinguishes DPZ as a unique yet compelling inclusion among automation stocks.

AI’s Green Thumb: Deere (DE)

Several John Deere vehicles are parked outside of a building.

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Despite its association with traditional agricultural machinery and heavy equipment, Deere (NYSE:DE) is not to be underestimated in the AI domain. Founded in 1837, Deere has evolved, developing its autonomous tractor equipped with a sophisticated AI protocol comprising a 360-degree camera system, high-speed processors, and a neural network. This protocol empowers the tractor to instantaneously process images and ascertain safe driving paths, enhancing efficiency while mitigating tractor-related accidents, thus substantiating Deere’s merit as a practical AI stock.

The Athletic Endurance of AI: Nike (NKE)

A stack of red Nike (NKE) shoe boxes.

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As a distinguished name in athletic footwear and apparel, Nike (NYSE:NKE) is virtually synonymous with sports culture. However, far from being an AI stock primarily, Nike adeptly harnesses robotics revolution innovations to enhance its operations. Embracing digital intelligence holistically, Nike utilizes AI to analyze running data and personalize training plans, performance feedback, and recommendations through its Run Club app. Additionally, through Nike Fit, the company offers an AI-powered foot scan, ensuring tailored consumer experiences. Nike’s strategic application of AI to alleviate consumer pain points underscores its prowess as an AI stock.

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Top Automation Stocks to Consider

Revolutionary Automation Stocks Shaping Tomorrow’s Market

By nature, human beings have always harbored the instinct to seek out the thrill of chance and speculation. It comes as no surprise, then, that a company like DraftKings (NASDAQ:DKNG) has managed to capture the public’s imagination. In an age where a trip to Las Vegas is no longer a prerequisite for indulging in a little gambling, DraftKings has handily brought the casino to our doorsteps.

What sets DraftKings apart is its astute utilization of sophisticated AI technology. Leveraging AI algorithms, the Boston-based sports betting company has not only made the process of placing bets and targeting advertising to consumers more efficient, but it has also employed machine learning models to glean vast amounts of data for a more personalized and convenient user experience. This allows the DraftKings app to offer seamless navigation for its users and enables dynamic pricing through real-time adjustments to odds and betting lines based on current game situations and betting activity. This commitment to technological advancement in consumer experience positions DKNG as a compelling investment.

FedEx (FDX)

A stalwart in the domain of transportation, e-commerce, and business services, FedEx (NYSE:FDX) has established itself as a global leader in air delivery services by being one of the first major shipping companies to extend overnight delivery to its clients. While the fundamental premise of moving parcels from point A to point B remains unchanged, FedEx has turned to digital intelligence to elevate its operational efficiencies.

In recent years, FedEx has turned to machine learning to enhance the accuracy of estimated delivery times, a move that echoes the demands of the modern consumer experience. This pivot has allowed FedEx to keep apace with the rapidly evolving landscape of consumer demands, thereby elevating its status as a higher-risk, higher-reward AI stock. Analysts have identified a potential upside for FDX, with projected share values set to reach $305.65.

Crispr Therapeutics (CRSP)

Amid the landscape of biotechnology, Crispr Therapeutics (NASDAQ:CRSP) has carved out a place for itself by specializing in gene editing – a domain that, by its very nature, tends to inspire both fascination and controversy. Being one of the early adopters of the CRISPR gene-editing platform for developing medicines aimed at treating a wide spectrum of diseases, Crispr Therapeutics has seen its value surge by about 57% in 2023.

CRSP’s relevance in the domain of automation stocks stems from its association with the ongoing robotics revolution. As biology and digital intelligence find synergies, researchers have been able to marry CRISPR technology with AI-designed proteins to awaken dormant genes previously silenced chemically. This groundbreaking technology has the potential to address hitherto intractable diseases and medical conditions. However, it’s essential to acknowledge the challenges that accompany such cutting-edge innovation. CRSP faces a below-par three-year revenue growth rate of 89.4% compared to its industry peers, but analysts maintain a moderate buy outlook, setting an average price target of $80.