10 Cheap Robotics Stocks To Buy

5. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders In Q1 2024: 34

Price Upside: 13%

Average Share Price Target: $142.42

Teradyne, Inc. (NASDAQ:TER) is one of the biggest semiconductor testing equipment providers in the world. This provides it with a considerable competitive advantage since it enjoys deep partnerships with a limited number of large scale chip manufacturers such as TSMC and Intel. Additionally, Teradyne, Inc. (NASDAQ:TER)’s presence in the chip industry and its business model allow it to operate in the robotics industry on multiple levels. On one front it provides automated testing equipment to chip companies, which makes it a front end robotics company. On the other, Teradyne, Inc. (NASDAQ:TER)  stands to benefit from the chips that are used to make robots for other industries such as automotive manufacturing. Additionally, it has a considerable presence in a highly growing robotics industry, the warehousing industry through offering a variety of automated pallet pickers.

Teradyne, Inc. (NASDAQ:TER)’s management shared key details for its sizeable Robotics business division during the Q2 2024 earnings call where it outlined:

“Our highest priority in our Robotics go-to-market transformation is the development of an OEM solutions channel for UR. We have seen that customers purchasing cobot-based solutions from these partners get into production more quickly and have fewer problems than customers that build their own solutions or rely upon an integration partner. There are two aspects to the OEM Channel strategy. The first is signing up new OEM solution partners. In the first half of 2024, we have increased the total number of OEM solutions partners by 8%. Second, we work with these partners to get them to scale, which we define as having an annual revenue run rate above $1 million. Midway through the year we have nearly as many OEM solution partners that have reached that revenue level as we had in all of 2023.

One of our largest revenue OEM partners in the first half of 2024 uses our cobots in an AI based logistics solution. Overall, the OEM solutions channel has shown over 70% growth from the first half of 2023 to the first half of 2024. In the second quarter, the OEM channel represented over 30% of UR’s revenue. Finally, because of the criticality of the processes that our Robotics are being used to automate, we saw an opportunity to build a strong service business. In the first half of 2024 we launched managed service offerings at UR and MiR and are beginning to see customer uptake. On balance, the positive effect of these growth vectors and the challenging demand environment, we are expecting growth towards the low end of this year’s target 10% to 20% range.”