"More of a Co-Pilot Than a Replacement": Starbucks Stock (NASDAQ:SBUX) Gains With News About AI

Coffee giant Starbucks'(SBUX) has long had some labor troubles, and lately, it seems like they are getting worse. But Starbucks may be about to strike back with advances in artificial intelligence (AI). However, Starbucks is pushing back on the idea that it wants to replace employees—even unionized ones—with machines. The news was good enough for investors, though, as Starbucks shares gained fractionally in Monday afternoon's trading.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential The idea, CEO Brian Niccol advanced, is that AI is supposed to be a help for current employees, serving as "…more of a co-pilot than a replacement." The AI keeps track of ingredient lists and other things, allowing the barista to try and strike the "human connection" that Starbucks desperately wants to engender as it tries to reassert its identity as a "third place." Third places, you will remember, are those that are not work or home but serve as social venues. The underlying threat, though, is that the AI that understands a recipe list today can control mechanisms that make the drink in question outright tomorrow. And once that is done, then what sense is there in a barista? The human connection is helpful, yes, and on-brand for Starbucks. But baristas who only hand over drinks and make conversation are likely needed in fewer numbers. Starbucks' Most Viral Drinks Meanwhile, Starbucks also released a list of its most viral drinks of 2025. Interestingly, one of these drinks has not actually been released yet. That drink is the Dubai Chocolate Matcha Latte, which broke cover only recently. Barista reactions were mixed. Some believed the drink would cause stores to flood with customers, while others believed Starbucks was irredeemably late to the party. Its mere existence, though, was sufficient to fire up interest and make it the "buzziest" drink of 2025, even if it will not be available until 2026. Is Starbucks Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 12 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 6.07% loss in its share price over the past year, the average SBUX price target of $95 per share implies 10.86% upside potential.