- With $10.7 billion poured into robotics this year, these robotics stocks stand primed for savvy tech investors.
- Nvidia (NVDA): Nvidia’s GPU prowess is critical to robotics advancements, and despite regulatory hurdles, shares have leaped by 762% in 5 years.
- Amazon (AMZN): Amazon’s entry into robotics may streamline deliveries, backing its 66% stock rise with a solid $143 billion revenue base.
- Symbotic (SYM): Symbotic’s alliance with SoftBank could democratize automation, fueling its stock’s impressive 190% year-to-date surge.
Investor interest in robotics stocks is soaring. The evolution of the industrial Internet of Things (IoT) sets the stage for remarkable growth in the sector. And robotics companies are stepping up as the power players of a new industrial revolution. The Robotics Business Review’s September 2023 report underscores this trend, with robotics funding surging to $1.84 billion from 50 investments.
Companies at the forefront of producing robotic devices and software are poised for profit growth. Similarly, suppliers of essential raw materials for these robots could see their market share expand as the demand surges.
Investors have expansive opportunities to tap into the consistent technological progress that characterizes this vibrant field. But in my opinion, these three stocks are actively engineering the future of robotics.
Nvidia (NASDAQ: NVDA) has established itself firmly in the artificial intelligence (AI) industry, but its strategic inroads into the robotics sector shouldn’t be overlooked. However, the recent U.S. restrictions on the export of certain Nvidia AI chips to China present a potential setback that could affect the company’s revenue. Still, Nvidia’s leadership remains confident and steadfast in mitigating the impact of these regulatory constraints.
Moreover, Nvidia thrives in partnerships with robotics companies, with its graphic processing units laying the foundation for advanced robotics and transformative technologies. As these sectors aim for groundbreaking progress, they increasingly depend on Nvidia’s chips, highlighting its crucial role in driving technological advancements.
The stalwart’s shares have almost tripled since the beginning of the year, continuing a five-year streak that has seen the stock soar by 762%. This track record cements Nvidia as an attractive choice for investors, particularly those with a long-term perspective.
Amazon (NASDAQ:AMZN) extends its reach far beyond e-commerce. The company’s entry into robotics aims to transform delivery logistics, enhance efficiency and cut costs, giving Amazon a sharper competitive advantage and the potential for healthier profit margins.
After a period of stagnation, Amazon’s stock has rallied with a 66% increase year-to-date, marking a shift from the flat growth of previous years. This revival, part of a broader 63% rise over the past five years and buoyed by a whopping $143 billion revenue, indicates a strong financial foundation and potential for further gains.
Furthermore, as Amazon continues to innovate, particularly in the robotics sector, it stands out as a dynamic investment option. TipRanks analysts suggest a strong buy with an upside potential of 23.16%. With its well-known brand and relentless pursuit of new profit avenues, Amazon offers investors a stake in a company skilled at leading in a fast-evolving tech landscape.
Symbotic (NASDAQ: SYM) is engineering a revolution in warehouse logistics with its cutting-edge robotics, already embraced by giants like Walmart (NYSE: WMT), Target (NYSE: TGT) and Albertson’s (NYSE:ACI). With an eye for innovation, the company has clinched a strategic alliance with SoftBank (OTCMKTS:SFTBY), setting the stage for expansion and making automation accessible to smaller businesses.
The collaboration with SoftBank marks a pivotal chapter for Symbotic, promising to help the company surge past financial barriers and unlock a new customer base. Investors have ample reasons for optimism, with the stock already exploding approximately 190% year-to-date.
TipRanks analysts rate it a moderate buy, forecasting a 42.2% upside. SYM’s robust top-line growth trajectory has put a spotlight on the company for investors. It could be the spark for shares to surge, turning steady performance into exceptional growth. For those eyeing the robotics sector, Symbotic presents a rapidly growing powerhouse reshaping the future of automated warehousing.
This post originally appeared at InvestorPlace.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines