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AI is having a big impact on manufacturing. It’s being rapidly applied to automating tasks and other efficiency efforts. These are good things, but they’re also expected to displace jobs in manufacturing and beyond. At the same time, job-displacing AI stocks have the potential to make investors rich.
It is possible that AI-enabled humanoid robots will soon find their way onto factory floors, creating a paradox as some people will suffer the resulting job losses while others will benefit from increased revenue and efficiency.
You, I, and many others empathize with those who will lose their jobs, but at the end of the day, we are powerless to stop this trend. Therefore, the best course of action is to understand how to take advantage of it. Investing in stocks that will lose jobs to AI is one of the best ways to do that.
Nvidia (NVDA)
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NVIDIA (Nasdaq:NVDA) is one of the best stock investments in all things AI-related, including the resulting job reductions and increased efficiencies that should ultimately create value.
Nvidia’s graphics processing units (GPUs) are the most in-demand chips for just about everything AI-related. To understand this, just note that the vast majority of these chips are sold for end use in data centers: Of the company’s first-quarter revenue of $26 billion, $22.6 billion came from data center sales.
This means that Nvidia is at the center of the massive hyperscale algorithms that train entire AIs, which are then applied to everything, including automating tasks in the manufacturing sector.
That means Nvidia’s GPUs are powering robots across manufacturing, creating artificial intelligence that automates human tasks. While that might seem scary at times, it could make investors a lot of money.
Rockwell Automation (Korea)
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Rockwell Automation (New York Stock Exchange:South Korea) is one of the best-known industrial automation stocks. The company’s stock has significant upside potential.
This is a particularly interesting AI company because of the story it’s telling. Rockwell Automation says it’s focused on augmenting, not replacing, with AI. The company applies artificial intelligence to tasks such as predictive maintenance, quality control, and process automation. Again, the entire story revolves around the idea that AI will augment, not replace, human jobs.
Call me skeptical, but everything your company does will require more advanced skill sets, and while some workers will undoubtedly be able to upskill to acquire the technical and analytical skills that AI brings to automation, others will not.
“As hard as it is to accept, the least qualified employees will be laid off. I’m not saying that investors should avoid Rockwell Automation as a result, I’m just trying to be more realistic about what’s going to happen. Rockwell Automation will lose some jobs, but it will create value in the process, driving the stock price even higher.”
Tesla (TSLA)
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Tesla (Nasdaq:TSLATesla is one of the hottest AI stocks for job destruction. Many readers may already know that the company is developing Teslabots. For those who don’t, Tesla is developing a humanoid robot, the second generation of which recently debuted at the 2024 World Artificial Intelligence Conference in Shanghai.
Readers interested in learning more about the robot should refer to this article. The second generation Tesla robot is 30% faster and weighs 10 kg less. Some analysts believe that the prototype will soon be able to replace human labor in some areas.
This raises the question of how Tesla’s bots will be integrated into the electric car maker’s operations, or will they be spun off as a standalone company? No one knows the answer, so investors looking to capitalize are left thinking TSLA stock is the answer.
As of the publication date of this article, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com’s copyright. Publication Guidelines.
As of the publication date, the responsible editor (directly or We do not indirectly hold any positions in the securities described in this section.
