What is the best robotic stock to buy?

Since the dawn of the robotics era, robots have fascinated us. For some, the concept of machines mimicking human actions is thrilling, while for others, it evokes discomfort.

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Robotics, much like most progressive technologies, are not designed to replace human labor. Instead, they are tools to automate repetitive tasks, thus providing us with the luxury of engaging in more fulfilling pursuits. Recent strides, such as the emergence of AI-driven services like ChatGPT, have catalyzed the integration of automation within various enterprises.

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Global adoption of robotics is projected to soar, with expenditures potentially doubling and approaching $210 billion by the near future. Investing in robotics stock could be a wise financial move.

Investing in Robotics Stocks in

Daily interactions with robotic processes are prevalent. E-commerce giants like Amazon and Shopify are spearheading automation in fulfillment centers using sophisticated machines. Devices like smart speakers and various IoT gadgets have found their way into our homes, performing tasks seamlessly. Chatbots aid in navigating online queries.

However, some robotic applications are less apparent. Here are eight significant robotics stocks worth considering.

Company	Market Cap	Description
Nvidia (NASDAQ:NVDA)	$1.28 trillion	Leader in semiconductor design with a significant edge in AI
Intuitive Surgical (NASDAQ:ISRG)	$115.8 billion	Pioneer in robotic-assisted surgery
ABB (OTC:ABBNY)	$79.25 billion	Major European industrialist in robotics and robotic equipment
Rockwell Automation (NYSE:ROK)	$35.1 billion	Industrial automation leader in areas like automotive and food production
Zebra Technologies (NASDAQ:ZBRA)	$13.7 billion	Creator of mobile devices that enhance work efficiency
Teradyne (NASDAQ:TER)	$16.13 billion	Provider of industrial tools that automate device-testing tasks
PTC (NASDAQ:PTC)	$20.20 billion	Software tech partner aiding in manufacturing and industrial processes
UiPath (NYSE:PATH)	$13 billion	Developer of enterprise software-based robots

1. Nvidia

Semiconductors are fundamental to all tech innovations. Nvidia stands at the forefront of this arena, and its high-tech circuitry facilitates various computing processes, including those in robotics.

Nvidia's GPUs are enhancing data processing speeds, especially in data centers, but their applications extend to personal computers, IoT devices, and factory robots. Efficient data processing is vital for complex robots to function correctly.

One notable example of Nvidia's innovation is the "Jetson" module lineup, equipped with AI and machine learning, used in diverse fields like industrial machinery, healthcare, and autonomous vehicles.

With robust hardware and software capabilities, Nvidia remains a stalwart in the robotics sector, driving the future of AI applications.

2. Intuitive Surgical

Intuitive Surgical was a trailblazer in robotic-assisted surgery with its da Vinci system. Since its introduction, it has revolutionized surgery globally by enabling precise and minimally invasive procedures, thus improving patient recovery outcomes.

Despite over two decades in the market, Intuitive Surgical continues to grow. The bulk of surgeries worldwide still lack robotic assistance, presenting a vast opportunity for expansion. The business also benefits from ongoing revenue streams through disposable instrument sales and associated services.

The continuous innovation and revenue model cement Intuitive Surgical as a top contender in healthcare robotics.

3. ABB

ABB, a leading European conglomerate, plays a crucial international role in industrial equipment. Their offerings span energy infrastructure, manufacturing tools, and metallurgical equipment, among others.

ABB's robotics primarily consist of robotic arms and controllers, essential for automating tasks in various production environments. Additionally, ABB's software solutions assist clients in optimizing and overseeing their automated systems, even offering AR tools for real-time monitoring.

4. Rockwell Automation

Rockwell Automation excels in industrial technologies that aid manufacturing sectors in evolving their machinery towards smarter and more efficient operations. Their solutions cater to energy, chemical, food, beverage, and automotive industries.

While these industries are long-established, Rockwell maintains strong profitability through its robotics and tech services, showing consistent growth and promising returns for shareholders.

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5. Zebra Technologies

Zebra Technologies has long been an automation stalwart, producing mobile computing gadgets designed to enhance efficiency. Their products are integral to retail, healthcare, and banking, streamlining tasks and improving workflow through machine vision and AI-enhanced bar code scanners and interactive kiosks.

Zebra's sustained growth highlights its importance as many industries increasingly adopt its robotics solutions to optimize worker productivity.

6. Teradyne

Teradyne specializes in industrial equipment that automates repetitive tasks, especially in the semiconductor industry. Their solutions expedite testing processes, ensuring the accuracy and efficiency of products before they reach the market.

Teradyne collaborates with automotive, aerospace, and defense sectors, augmenting their functions with robotics like the versatile robotic arms from Universal Robots and the autonomous Mobile Industrial Robots (MiR).

Despite its behind-the-scenes role, Teradyne's influence spans across everyday devices and critical tech, reinforcing its relevance in industrial automation.

7. PTC

PTC operates largely out of public sight, providing augmented reality and IoT platforms, and design software that harmonizes human and machine efforts in manufacturing. Their solutions enhance human capabilities, connecting and coordinating various business elements effectively.

Although not a direct robot manufacturer, PTC's software unlocks the full potential of robotics, aiding businesses in harnessing the power of the digital economy.

Image source: Getty Images.

8. UiPath

UiPath focuses on robotic process automation (RPA), creating software bots that handle virtual tasks within digital environments. These bots efficiently manage routine office duties, from data entry to customer relations, significantly enhancing workplace productivity.

With a promising future in automation, UiPath offers powerful solutions that many industries can leverage, especially in light of labor shortages and rising operational costs.

The Long-Term Investment Outlook in Robotics

Recent innovations in semiconductors and software have accelerated the global application of robots. As this technology advances, it will reshape organizational efficiencies and operational methodologies.

Investing in robotics promises substantial long-term rewards, although patience is key as the industry continues to evolve.

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In this article, we explore the top 14 robotics stocks to consider. For those directly interested in the crème de la crème, head over to our list of the 5 Best Robotics Stocks To Buy Right Now.

As of now, the global robotics market stands at a valuation of $46.0 billion. Forecasts by IMARC Group suggest that this will burgeon to $169.8 billion, growing at a robust compound annual growth rate (CAGR) of 15.1% from to . This expansion is driven by AI advancements, labor shortages, government support, and the growing demand for automation.

The rise in robotics adoption has doubled in the past six years, with projections pointing towards further acceleration. A report by the International Federation of Robotics noted the deployment of at least 3.5 million industrial robots in manufacturing worldwide, with installations at an all-time high. This surge is primarily manufacturers' response to cut down production expenses. Nowadays, robotics' influence extends beyond manufacturing into healthcare and wellness sectors, automating repetitive, high-volume tasks and showing potential for more autonomous operations in the future.

Historically, high costs of automation limited its benefits to larger corporations. However, there has been a paradigm shift; the average price of industrial robots halved over the last decade, and models like robotics-as-a-service are making automation accessible even for SMEs.

In recent years, global events such as the COVID-19 pandemic and geopolitical tensions have highlighted vulnerabilities in global supply chains, especially concerning components like semiconductors. Consequently, European and US businesses aim to reshore operations, investing significantly in robotic automation within the next three years. Legislative actions, such as the US CHIPS and Science Act, are further promoting this trend. Meanwhile, China has already surged ahead, becoming a leader in technological adoption.

In his GatesNotes blog, Bill Gates emphasized significant robotics advancements. He highlighted five pioneering startups, including Agility Robotics, which is developing human-like robots for logistics; Tevel, an Israeli startup focusing on autonomous fruit picking; Apptronik, whose robots could assist astronauts; UCLA's RoMeLa with robots navigating challenging terrains; and Field AI, which is creating fully autonomous AI-powered robots. Gates envisions a future where robots, including humanoids, play pivotal roles in disaster response, agriculture, manufacturing, and healthcare.

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Investors aiming to capitalize on the robotics industry's growth potential should consider stocks like NVIDIA Corporation (NASDAQ:NVDA), Thermo Fisher Scientific Inc. (NYSE:TMO), and Intuitive Surgical, Inc. (NASDAQ:ISRG).

Our Methodology

We selected top robotics stocks based on overall hedge fund sentiment. Our analysis considers the sentiment of 910 elite hedge funds tracked by Insider Monkey as of the third quarter of . We present the list in ascending order of hedge fund holders. Hedge funds' top 10 consensus picks have outperformed the S&P 500 Index by over 140 percentage points over the last decade (see details here).

14 Best Robotics Stocks To Buy Now

A ground-level view of a manufacturing floor, with a robotic arm precisely applying a rivet to a part.

Best Robotics Stocks To Buy Now

14. Rockwell Automation, Inc. (NYSE:ROK)

Number of Hedge Fund Holders: 34

Rockwell Automation, Inc. (NYSE:ROK) offers industrial automation and digital transformation solutions. Its three segments — Intelligent Devices, Software & Control, and Lifecycle Services — provide comprehensive hardware, software, and services. Their client base spans automotive, semiconductor, and logistics industries. As of February 7, Rockwell Automation declared a $1.25 per share quarterly dividend, payable on March 11 to shareholders recorded by February 20.

According to Insider Monkey's database for the third quarter, 34 hedge funds favor Rockwell Automation, Inc. (NYSE:ROK), up from 32 in the prior quarter. Fisher Asset Management holds the highest stake with 555,938 shares valued at roughly $159 million.

Alongside companies like NVIDIA Corporation (NASDAQ:NVDA), Thermo Fisher Scientific Inc. (NYSE:TMO), and Intuitive Surgical, Inc. (NASDAQ:ISRG), Rockwell Automation stands out as a top robotics stock to invest in.

TimesSquare Capital U.S. Mid Cap Growth Strategy commented on Rockwell Automation, Inc. (NYSE:ROK) in its Q3 investor letter:

In the Industrials sector we lean towards business service companies, particularly those focused on automation and improving efficiency, as well as essential infrastructure services. Rockwell Automation, a new addition this quarter, provides industrial automation and digital transformation solutions. The shift towards automated and connected manufacturing is driving growth, also countering rising labor costs.

13. PTC Inc. (NASDAQ:PTC)

Number of Hedge Fund Holders: 38

PTC Inc. (NASDAQ:PTC), a prominent software firm, serves clients in the Americas, Europe, and Asia Pacific. It specializes in product development, connectivity, augmented reality, and publishing. Recently, it reported a Q1 fiscal year non-GAAP EPS of $1.11 and revenue of $550.21 million, surpassing market estimates with 18.1% year-over-year growth.

Insider Monkey's third quarter data indicates that 38 hedge funds are long on PTC Inc. (NASDAQ:PTC), compared to 40 in the previous quarter. Lone Pine Capital, led by Stephen Mandel, holds the largest stake with 3.16 million shares valued at $448.6 million.

12. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders: 38

Teradyne, Inc. (NASDAQ:TER) develops and supports automatic test equipment, including semiconductor test platforms, defense systems, robotic arms, autonomous mobile robots, and wireless testing solutions. For Q4, it reported a non-GAAP EPS of $0.79, beating expectations despite a revenue shortfall.

As per Insider Monkey, 38 hedge funds favored Teradyne, Inc. (NASDAQ:TER) in the third quarter, down from 41 in the prior quarter. ARK Investment Management, led by Cathie Wood, holds the largest stake with 1.42 million shares valued at about $143 million.

Carillon Clarivest Capital Appreciation Fund commented on Teradyne, Inc. (NASDAQ:TER) in its Q1 investor letter:

Stock selection contributed the most, while sector allocation also had a positive impact. An underweight in communication services and an emphasis on energy aided performance, although an underweight in consumer staples and an emphasis on materials hindered it. Stock selection within healthcare and materials was strong, but weak within information technology and industrials. Teradyne faced challenges as a major client delayed its technology transition. Consequently, the Fund sold its stock.

11. Stryker Corporation (NYSE:SYK)

Number of Hedge Fund Holders: 47

Stryker Corporation (NYSE:SYK) operates through two segments: MedSurg and Neurotechnology, and Orthopaedics and Spine. The latter specializes in hip and knee implants, trauma surgeries, and spinal products, while the former provides devices for surgical, emergency medical, and brain surgeries. Recently, Stryker reported a strong Q4 with a non-GAAP EPS of $3.46 and revenue of $5.8 billion.

Fundsmith LLP, managed by Terry Smith, holds the largest stake in Stryker with 5.5 million shares worth $1.5 billion.

Baron Health Care Fund commented on Stryker Corporation (NYSE:SYK) in its Q4 investor letter:

During the quarter, we initiated a position in Stryker Corporation. This large, diversified medical device company has two primary segments. The stock dropped due to concerns about weight loss drugs impacting their business. We believe this was an overreaction, seeing this as an opportunity to invest in a growth company at a reasonable valuation. Stryker’s broad product portfolio positions it to benefit as more medical procedures shift to ambulatory surgery centers, and new product launches should drive growth. Management’s long-term goals include high organic sales growth and double-digit EPS growth.

10. Emerson Electric Co. (NYSE:EMR)

Number of Hedge Fund Holders: 53

Emerson Electric Co. (NYSE:EMR) is a technology and software company serving industrial, commercial, and consumer markets. Recently, it declared a quarterly dividend of $0.525 per share.

Insider Monkey reports that 53 hedge funds were bullish on Emerson