These 3 Stocks Are Shielded From the AI Takeover
As artificial intelligence (AI) continues its rapid integration into the U.S. economy, the labor market faces a major inflection point. While some businesses embrace AI to reduce costs and boost efficiency, others risk displacing long-standing human roles, causing uncertainty for workers and investors alike.
While this may be a threat for some businesses, others have a fundamental moat around them that acts as the ultimate protection. Proprietary data concerns, regulatory barriers, and human oversight requirements make some companies resistant to or unable to utilize full automation. These firms not only provide job stability for employees but also create opportunities for investors.
Investors seeking a bit more certainty and stability in the red-hot AI sector might be interested in names like Snowflake Inc. (NYSE: SNOW), Intuitive Surgical Inc. (NASDAQ: ISRG), and CrowdStrike (NASDAQ: CRWD)—here's why.
Snowflake: Data Privacy Is the Real Asset
While Snowflake has extensively used AI in its own business, especially in cloud computing and data storage services, its true strength lies in the privacy and sensitivity of the data it manages. AI models significantly expedite and make workflows more efficient. However, there is a limit to how much access to this data can be given to these models.
For security and compliance reasons, much of Snowflake's work demands human oversight, as AI cannot fully replace the discretion required in handling confidential enterprise information. Outside operators are needed to prevent database hacks, ensure no individual model leaks, or misplace the data stored in the cloud.
This is why SNOW is trading at 90% of its 52-week high. Analyst sentiment supports further upside, with a consensus Moderate Buy rating and a price target of around $255, offering a nearly 15% upside. Some analysts think the stock could go even higher, like Oppenheimer’s Ittai Kidron, who projects a $275 price target, implying 23% growth potential.
Intuitive Surgical: AI Enhanced, Not AI Driven
Due to its nature and the regulations in healthcare, AI can support but not replace human expertise.
Take Intuitive Surgical, for example. Known for its robotic-assisted surgery platforms, the company relies on human surgeons to operate its systems. This means that no amount of AI development will be able to render the company useless, as the requirement for a licensed operator ensures that Intuitive Surgical’s model is future-proof. Even as AI enhances surgical precision, this regulatory moat insulates the company from automation risks while preserving its innovation edge.
Like Snowflake, Wall Street analysts realize the value of this moat, assigning the stock a consensus price target of $595.95 and a Moderate Buy rating, representing a 32% upside from current levels. As bold as this call is, it still is below the stock’s 52-week high of $616 per share, giving investors more room to rally.
CrowdStrike: Cybersecurity That Can’t Be Outsourced to AI
In cybersecurity, trust and control are paramount. CrowdStrike’s value proposition lies in its proprietary threat detection and response systems. AI tools could become targets themselves if granted access to sensitive security infrastructure. This makes CrowdStrike’s in-house, human-supervised software essential to maintaining integrity in its operations.
And institutional buyers have started to pay attention. For example, Vident Advisory recently increased its stake by 29.4%, bringing its total investment to $174.3 million. However, that’s not even a drop compared to the broader $7 billion net institutional buying over the past quarter alone. All of this serves as a vote of confidence and a belief in this company's future.
Wall Street analysts agree and have given the stock a consensus Buy rating and a price target of $460, suggesting an upside of more than 5% from current levels. Analysts cite CrowdStrike's continued market share gains in endpoint security as key growth drivers.
