From generative artificial intelligence (AI) to the metaverse to GLP-1 (obesity) drugs, there’s no shortage of promising disruptive technologies stocks that can shape the future and perhaps change the world as we know it. Indeed, we’ve all been propelled many years into the future since OpenAI ChatGPT took off more than a year ago.
New developments (think text-to-video generation from innovations like Sora) may shock investors who view the AI boom as “just another” short-lived trend.
The rise of AI, mixed reality (MR) and biotech breakthroughs make the tech sector as exciting as ever, even in this era of higher rates. As such tech gets better, more capable, and perhaps more profitable, it’s tough not to give top tech plays attention. Though it’s hard to tell who wins and loses from the rise of any new technology, the following three, I believe, seem likelier to be winners over time.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) has had quite the fall from grace. After its recent post-quarter sag, it may be the least magnificent of the Magnificent Seven cohort. That is if the company and its stock are still even in the basket after its latest tough quarter.
The man behind the Magnificent Seven group, Jim Cramer, seems to think Tesla is no longer deserving of being among his Magnificent Seven. Regardless, I still think it’s a mistake to give up on the long-term growth potential of electric vehicles (EVs).
My takeaway? EVs still represent a disruptive technology that will improve the world. Though I’m not sure if Tesla will remain king with the rise of numerous competitors, specifically from the Chinese market, I believe there’s still a lot to love about EVs, even as Tesla’s bearish descent drags on.
I’m not one to attempt to catch a falling knife. But Tesla has come down far too fast, and I am inclined to view it as one of the more attractive tech plays out there. With various full self-driving (FSD) industry setbacks, Tesla’s robotaxi service may still be far off from going mainstream. In any case, if a firm can climb out of a major rut, it’s Tesla.
Apple (AAPL)
Apple (NASDAQ:AAPL) is behind a handful of game-changing technologies, from the iPhone to the Vision Pro; the Cupertino-based consumer tech giant seems always to be hungry to delight its loyal customers with new gadgets. Though we’ve heard about some consumer returning their Vision Pro headsets in recent weeks, I don’t think investors should view the spatial computer as a flop. Like it or not, the first Vision Pro will probably be the least capable headset Apple will make.
As new iterations, updates and versions of the spatial computer come to be, I guess more users will see Apple’s vision (forgive the pun) for Vision Pro. It’s a product with huge potential in the entertainment and workplace realms. Add a bit of generative AI into the equation and shrink the form factor a bit, and Vision Pro is destined for success.
Sure, Apple may have pulled the plug on its EV (Apple Car?). But it now has more resources to allocate to what matters most: Vision Pro and generative AI, both key categories that could help the firm continue changing the world for the better.
Meta Platforms (META)
Speaking of mixed reality and AI, we have Meta Platforms (NASDAQ:META), a firm that’s been incredibly hot over the past year, surging around 177% over the timespan. The company behind the Meta Quest headset stands out as more of a value option than an Apple Vision Pro. The firm recently teamed up with LG Electronics to “accelerate XR [extended reality] business” to better compete with Apple and its Vision Pro.
A Meta-LG partnership could be a match made in heaven as it looks to move into the next chapter of virtual and augmented reality. In any case, Meta seems to have a stake in some of the most disruptive corners of the tech scene these days.
Whether we’re talking about ads with AI, social media or the metaverse, Meta stands to gain a lot if meeting any of its ambitious goals. That alone makes META stock well worth the 32.6 times trailing price-to-earnings (P/E) multiple, in my opinion.
On the date of publication, Joey Frenette owned shares of Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.