10 Cheap Robotics Stocks To Buy

1. Samsara Inc. (NYSE:IOT)

Number of Hedge Fund Holders In Q1 2024: 22

Price Upside: 5%

Average Share Price Target: $41.54

Samsara Inc. (NYSE:IOT) is a technology company that focuses on the Internet of Things (IOT) industry. This industry leverages the connectivity of the Internet to automate industries, supply chains, hospitals, and other sectors. Robots, particularly those in the logistics and warehouse industry are a key part of IOT since they are connected to centralized networks for observation and operation. This also exposes Samsara Inc. (NYSE:IOT) to the robot industry, and one such example is the firm’s GPS tracking products and their integration with DashPing’s Freight Bots for vehicle tracking, routing, and dispatch operations. Holistically, Samsara Inc. (NYSE:IOT)’s software business model means that it also benefits from recurring revenue. In fact, the firm’s first fiscal quarter saw it grow its high value customer base as those with $100,000 or more in ARR made up 53% of its total ARR for a four percentage point annual jump.

During the Q1 2025 earnings call, here’s what Samsara Inc. (NYSE:IOT)’s management had to say on this front:

“First, we continue to focus on serving large enterprise customers to drive durable and efficient growth at scale. We now have 1,964, $100,000-plus ARR customers, representing 43% year-over-year growth. We also grew our average ARR per $100,000-plus customer from 305,000 in Q1 last year to 316,000 in Q1 this year. The combination of more customers added and an increase in the average ARR per customer grew our ARR mix for $100,000-plus ARR customers to 53% in Q1, up from 49% one year ago and 45% two years ago. Second, our customers increasingly utilize Samsara as a system of record for physical operations by subscribing to multiple applications all on one unified platform. 94% of our $100,000-plus ARR customers and 83% of our core customers subscribe to multiple Samsara products.

We’re also seeing multi-product adoption at scale. Our two vehicle-based applications, Video-Based Safety and Vehicle Telematics, each represents more than $450 million of ARR, and our largest non-vehicle-based application, Equipment Monitoring, which is used to locate and manage field assets, is doing more than $125 million of ARR.”

IOT is a cheap robotic stock seeing favor from analysts. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IOT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None.