10 Best Robotics Stocks to Watch in 2024
Robotics stocks are involved in various industries, leading to frequent developments in this sector. This article explains what robotics stocks are and what to consider before investing in robotics stocks. Additionally, you will find a list of some of the best robotics stocks.
Table of Contents
What Are Robotics Stocks
The world of robotics, artificial intelligence (AI) and automation continuously grows in many industries. Robotics stocks allow individuals to invest in those companies that design, create and produce robotics technology.
History of Robotics Stocks
The first robotics stocks emerged when the first robot was created in the 1950s, yet robotics stocks only became public in 1974 when the first robotic companies were listed on the stock market. In the years after that, technologies became increasingly advanced, and more companies entered the market. In the 2000s, technologies started to include machine learning and artificial intelligence, producing robotics for the healthcare industry and consumers directly.
Robotics Stocks Industries
Robotics stocks can be found in all industries. Industrial companies look for robotics that can help with their manufacturing process, while the healthcare industry pays close attention to developments in, for example, robotic surgical systems and diagnostics tools. Apart from that, retail is a big market as well; think about the automated vacuum, drones, and self-driving technologies for cars.
10 Best Robotics Stocks to Watch
The word ‘best’ is subjective, so the following top robotic stocks list serves as a starting point for further research. The list is based on the stock having high volume and the fact that they are in the robotics industry.
- Nvidia – GPU design, AI and machine learning
- Intuitive Surgical – Surgical robotics
- Rockwell Automation – Industrial automation and information technology
- GE HealthCare Technologies – Medical Technologies
- ABB – Robotics and industrial automation
- Emerson Electric – Sustainable Industrial automation
- Zebra Technologies – Mobile computing company
- UiPath – Robotic Process Automation
- PTC – Software solutions
- Medtronic - Medical Technologies
Nvidia
Nvidia was founded in 1993 when the founders had the vision to bring 3D graphics onto the market, and in 1999 they created the first graphics processing units (GPU). Nvidia became a market leader in producing GPUs soon after, and throughout the years they have maintained that position.
When a computer program uses a lot of graphics, such as video games, and editing programs, but also artificial intelligence and machine learning applications, a good GPU helps to speed up the program. As of today, the newest GPU that Nvidia offers is the GeForce RTX 30 series. This GPU integrates AI technology to boost the speed of applications without losing image quality.
Currently, Nvidia has a market capitalisation of about $2.35 trillion.
Intuitive Surgical
The second on the list of best robotics stocks is Intuitive Surgical. This company was founded in 1995 with the vision to create surgical tools and techniques that are less invasive. In 2000, they launched the da Vinci Surgical System, which revolutionized robotics during surgery.
Intuitive Surgical develops robotics-assisted systems that help healthcare professionals provide care in a minimally invasive manner, leading to improved patient experience and better results. The latest Da Vinci 5 has over 150 innovations as compared to its predecessor, including force feedback technology, improved imaging, and a wider range of ergonomic settings.
Currently, Intuitive Surgical has a market capitalisation of about $142.63 billion.
Rockwell Automation
Originally known as Compression Rheostat Company, the firm was founded in 1903 and became Rockwell Automation in 1985. In the beginning, Rockwell Automation focused mainly on industrial automation but has expanded into both industrial automation and information technology and is now one of the best robotics stocks.
Rockwell Automation aims to optimize processes in the manufacturing industry in both hardware products, such as control systems and industrial sensors, and software products, such as designing software and data analysis. FactoryTalk, for example, is a series of products that provide tools like data analytics and visualization.
Currently, Rockwell Automation has a market capitalisation of about $30.82 billion.
GE HealthCare Technologies
The fourth on the list of best robotics stocks is GE HealthCare Technologies, which became an independent company in January 2023. Yet, the history of the company goes back to 1892, when it was part of General Electric (GE). Throughout the years it has become one of the most prominent providers of medical technologies.
GE HealthCare Technologies specializes in the development of medical devices and digital solutions in the healthcare industry, with technologies such as X-ray, ultrasound, and the use of AI to improve diagnostics and efficiency. The company is best known for the SIGNA MRI system, introduced in 1983, which had a big impact on diagnosing medical conditions.
Currently, GE HealthCare Technologies has a market capitalisation of about $37.40 billion.
ABB
ABB, which is short for Asea Brown Boveri, was formed in 1988 after a merger of the Swedish company Asea (founded in 1883) with the Swiss company BBC Brown Bovori (founded in 1891). After the merger, the multinational corporation ABB became a global leader in electronics and automation.
ABB structures its operations by four global business areas, electronics, motion, process automation, and robotics & discrete automation. The company is known for collaborative robots, also known as cobots, which are designed to work alongside humans in the manufacturing industry. An example of a line of cobots is YuMi, the name of which is short for “You and Me”, and is designed for small parts assembly processes.
Currently, ABB has a market capitalisation of about $90.65 billion.
Advantages and Disadvantages of Robotics Stocks
Before investing in robotics stocks, it is important to consider the advantages and disadvantages of these types of stocks.
Advantages
Sector diversity: Innovation in robotics technology can impact a wide range of fields and industries, from industrial to medical. Therefore, within the robotics industry, investors are not limited to committing to one single industry, reducing investment risks.
Strong growth expectations: Automation, robotics, and artificial intelligence are innovating and inventing new products consistently. Some in the industry expect that over the next decade, the industry will grow considerably.
Disadvantages
Capital intensive: The robotics industry can be expensive. Manufacturers need to invest a lot of their capital into different stages of the production process, such as research, design, production and patents. Even after the products are launched, money often needs to be invested into maintenance and upkeep to sustain the quality of the products. These high operating costs sometimes lead to robotics companies finding themselves in financial trouble which could lead to bankruptcy.
Potential worker displacement: It is uncertain what the long-term effects of robotics are when it comes to the number of jobs on the market. Automation is feared to be a threat to the workforce. This may not only impact the workers but can disrupt the economy and society as well. Ultimately, that may lead to financial consequences in robotics stocks if, for example, governments decide to implement new laws to protect workers from being replaced by robots.
How to Invest in Robotics Stocks
With Admiral Markets, you can trade and invest in thousands of stocks and ETFs. You can learn more about trading and investing commissions on the Admiral Markets Contract Specification page. Search for global stocks and ETFs from the MT5 web platform and invest in four steps:
- Open an account with Admiral Markets.
- Click on Trade on one of your live or demo trading accounts to open the web platform.
- Search for your symbol at the top of the search window.
- Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level.
Conclusion
Robotics stocks are an interesting area for the potential for future growth. However, identifying the trends of the future can be challenging as new technologies are always being created. It is important to exercise proper risk management and diversify into other types of stocks to help minimise overexposure to what is a highly volatile industry.
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FAQs on Robotics Stocks
How to invest in robotics stocks?
Determine how much you can invest and whether you want to invest in a specific stock or in exchange-traded funds (ETF). Then you can look for a broker that offers the robotics stock or ETF of your interest.
What are the best robotics stocks?
Some top robotic stocks are Nvidia, Intuitive Surgical, Rockwell Automation, GE HealthCare Technologies, and ABB. There are many other companies to name, and investors would do well to perform their own research.
What is the best robotic ETF?
Well-known robotics ETFs are the Global X Robotics & Artificial Intelligence ETF (BOTZ), the ROBO Global Robotics and Automation Index ETF (ROBO), and the iShares Robotics and Artificial Intelligence Multisector ETF (IRBO). To determine which is the best for you, it is advisable to check their features and see which suits you best.
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