In this article, we will look at the 10 Cheap Robotics Stocks to Invest In Now.
Global Robotics Market Outlook
The robotics industry, which has grown modestly over the past few years, has suddenly picked up pace after the emergence of AI. According to Goldman Sachs’ Head of China Industrial Technology research, the total addressable market for humanoid robots is expected to reach $38 billion by 2035, an upgrade of sixfold from a previous projection of $6 billion in 2023.
We recently covered 8 Most Promising Robotics Stocks According to Hedge Funds.
According to the International Federation of Robotics (IFR), professional service robots experienced a 30% increase in sales in 2023. IFR’s statistics department noted that more than 205,000 robotics units were sold in 2023, with Asia-Pacific accounting for 80% of global robotics sales. Transportation and logistics service robots were in huge demand and accounted for 113,000 units built in 2023, up by 35% compared to 2022. Medical robots are also in high demand, and the number surged by 36% to almost 6,100 units in 2023. The demand for surgery and diagnostics robots was the highest as they registered growth of 14% and 25% year-over-year.
The US Robotics Market
The United States is home to 199 companies engaged in robotics, with 66% producing professional service robots, 27% consumer service robots, and 12% medical robots. China ranks second after the US with 107 service and medical robot manufacturers and Germany ranks third with 83 companies.
According to IFR, the US manufacturing companies have invested significantly in automation, and the industrial robot installations surged by 12% to 44,303 units in 2023. Whereas, robotics installations in the electrical and electronics industry increased to 5,120 units in 2023, up by 37% year-over-year.
Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) and Robo Global Robotics and Automation Index ETF (NYSE:ROBO) have returned more than 11% over the last year, respectively. Given the rising demand for humanoids and automation systems, robotics stocks present a promising area for investors to explore.
With that, let’s take a look at the 10 cheap robotics stocks to invest in now.
Logistics robots filling packages in a warehouse, preparing for delivery.
Our Methodology
To determine the list of cheap robotics stocks to invest in, we shortlisted the companies mainly involved in robotics with an analyst upside of more than 25%. Cheap, in the context of this article, means stocks that Wall Street analysts believe are undervalued and will skyrocket to higher share prices. We have ranked the cheap robotics stocks to invest in based on their popularity among hedge funds, as of Q3 2024, in ascending order.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Cheap Robotics Stocks to Invest in Now
10. Lifeward Ltd. (NASDAQ:LFWD)
Analyst Upside (as of January 11): 402.62%
No. of Hedge Fund Holders: 1
Lifeward Ltd. (NASDAQ:LFWD) is a medical device company. The company designs and develops wearable structures that assist individuals with disabilities to stand and walk again. In September 2024, the company changed its name from ReWalk Robotics Ltd. to Lifeward Ltd. The branding change occurred following the AlterG acquisition in August 2023. AlterG specializes in anti-gravity systems and makes athletic training devices such as treadmills. The company’s rebranding now depicts a broader image with the addition of a new rehabilitation and athletic training portfolio.
Lifeward Ltd. (NASDAQ:LFWD) continues to grow its business, and in Q3 FY24, the company posted a 39% year-over-year increase in revenue. The company expanded its Medicare coverage, reaching more than 17,000 people with potential access to another 25,000 individuals. Moreover, Lifeward’s ReWalk Exoskeleton technology is getting more attention.
With a new beginning, Lifeward Ltd. (NASDAQ:LFWD) has raised capital of almost $5 million from selling around 1.81 million ordinary shares at $2.75 apiece. The company will use the capital to boost its commercial efforts, working capital, and other corporate purposes. Wall Street analysts expect Lifeward Ltd. to increase its revenue by an average of almost 35% in the first two quarters of FY25, backed by a more diversified portfolio in medical wearables and athletic training equipment. The company ended Q3 with $10.7 million in cash and zero debt, setting the stage for future growth backed by a solid financial foundation.
9. Stereotaxis, Inc. (NYSE:STXS)
Analyst Upside (as of January 11): 111.27%
No. of Hedge Fund Holders: 10
Stereotaxis, Inc. (NYSE:STXS) is a medical robotics firm. The company specializes in producing robotic systems that assist doctors to perform complex heart procedures with greater precision. The company’s primary products include the Genesis RMN System, the Odyssey Solution, and other related devices.
Stereotaxis, Inc. (NYSE:STXS) continues to impress, driven by rising demand for Genesis robotic systems and the thriving integration of Access Point Technologies (APT). In Q3 FY24, the company posted $9.2 million in revenue with an increase in both system and recurring revenues, up by a notable 18% year-over-year. By the end of October 2024, Stereotaxis had more than $13 million in cash and had zero debt.
Analysts and investors remain positive about STXS. The company has made major developments in its innovation strategy, including the most recent approval of its Magbot Magnetic Navigation ablation catheter in China for cardiac ablation procedures and GenesisX robotic system approval in November 2024. The GenesisX robotic system, useful in electrophysiology and across endovascular interventions, has already received CE approval in Europe and expects FDA approval in 2025, validating the improving robotics technology for heart-related procedures. The company is optimistic about continued revenue growth, driven by recent developments, and plans to enhance its product ecosystem and reach profitability without requiring additional financing.
8. Lantronix Inc (NASDAQ:LTRX)
Analyst Upside (as of January 11): 44.17%
No. of Hedge Fund Holders: 14
Lantronix Inc. (NASDAQ:LTRX) is a technology company that specializes in providing connectivity solutions for IoT and Remote Environment Management (REM). The company provides various products and services including SaaS, intelligent hardware, and engineering services.
Lantronix is focusing on AI and edge computing and assisting companies with the development of various tech tools. Lantronix helped Misty Robotics Inc. create Misty II, a platform robot that allows developers to create applications. The company has strategic alliances with Cisco, Cypress Semiconductor, Green Hills Software, PTC Inc.’s Kepware, and other technology firms. On January 7, the company successfully assisted Governmentwide Acquisition Contracts (GWACs) with the development of a military-grade gunshot detection system through its chip based on Qualcomm.
Lantronix Inc. (NASDAQ:LTRX) is highly focused on using AI to enhance its operations and so far it has been successful. Lantronix’s partnership with Qualcomm has already led to significant orders, with GWACs gunshot detection system being the latest one. The company is focused on streamlining its product portfolio and reducing operating expenses by almost $4.5 million for fiscal year 2025. Moreover, the company is expanding its market reach in new regions including Australia and New Zealand through the Netcom acquisition, which is projected to add $6 to $7 million in revenue in CY24.
Lantronix’s CEO Saleel Awsare has a huge role in the company’s ongoing success. Awsare received the ‘IoT Company CEO of the Year’ award in the 9th annual IoT Breakthrough Awards program. 180 Degree Capital Corp stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) and its CEO in its Q2 2024 investor letter:
“More recently, we have been working behind the scenes with the management and board of Lantronix, Inc. (NASDAQ:LTRX) on ways to solidify the strong foundation of the company and set it up for success and significant value creation for stockholders in the future. We believe LTRX’s new CEO, Saleel Awsare brings an interesting and successful background to LTRX. What we believe he needed to be in the best position for success were board members who have experience navigating the challenges unique to microcapitalization companies. Following multiple discussions, we introduced Saleel and his board to Narbeh Derhacobian, the former Chief Executive Officer and founder of our former portfolio company, Adesto Technologies, Inc., and one of Adesto’s board members, Kevin Palatnik, who has significant experience as a CFO at multiple related businesses. We were pleased to see that LTRX’s board saw the same value that we do in these individuals, in terms of helping Saleel and his team to have the best opportunities to achieve multiple catalysts that could lead to material increases in value for LTRX and its stockholders.”
7. Accuray Incorporated (NASDAQ:ARAY)
Analyst Upside (as of January 11): 185.71%
No. of Hedge Fund Holders: 14
Accuray Incorporated (NASDAQ:ARAY) is a healthcare firm that specializes in the design, development, and sale of radiosurgery and radiation therapy systems for tumor treatment. The CyberKnife System is the company’s most prominent robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain.
Accuray Incorporated (NASDAQ:ARAY) has experienced notable progress, especially in China. During Q1 FY25, the company’s sales soared over 30% year-over-year in China, driven by customer demand in both Type A and B market segments. The company’s Tomo C, a fast and effective radiation delivery device, is targeting the growing Type B market in China, which is expected to grow to $5 billion over the next five years. The company also maintains its robust customer installations and increasing backlog in the Type A segment.
Tomo C’s production in China will increase the company’s product shipments in the coming quarters, leading to improvement in sales and profitability. In addition to China’s robust progress, the company experienced revenue momentum in the APAC region, driven by first-in-country shipments in Thailand, the Philippines, and Myanmar. The customer base in EIMEA and Japan increased by 4% and 3% in Q1, respectively. The company surpassed Q1 FY25’s earnings and revenue estimates and analysts expect ARAY to carry the same momentum during the next three quarters.
6. Symbotic Inc. (NASDAQ:SYM)
Analyst Upside (as of January 11): 36.83%
No. of Hedge Fund Holders: 15
Symbotic Inc. (NASDAQ:SYM) is an automation technology company. The company offers AI-driven automation-powered robotic and software platform solutions to support large-scale supply chain operations. The company also provides FreeMove 3D depth-sensing computer vision systems for individual business operations and all related intellectual property.
Symbotic Inc.’s (NASDAQ:SYM) competitive ability is to provide customizable AI solutions to automate the processing of full pallets and separate individual cases to expand available warehouse space. Considering the rising demand for e-commerce and the pressure to deliver ever-faster shipping, the need for warehouse automation has surged. The company’s systems allow warehouses to accomplish a 30% to 60% reduction in space requirements, leading to higher efficiency, lower labor costs, and significantly minimizing operating and delivery expenses.
On December 13, Symbotic Inc. (NASDAQ:SYM) announced the acquisition of OhmniLabs, a robotics innovator specializing in healthcare solutions. This adds to the company’s portfolio and combines Symbotic’s large-scale automation power with OhmniLabs’ mobile robots, AI, and vision systems. For the fiscal year 2024, the company increased its revenue by a remarkable 55% from a year ago, driven by the addition of new customers including Walmex. The company expects Q1 FY25 revenue between $495 million and $515 million, a year-over-year growth of almost 35% to 40%, driven by new investments and increasing clients.
Cantor Fitzgerald analyst Derek Soderberg reiterated an overweight rating for SYM and set a price target of $60, which reflects an upside of 134%, as of January 11. Soderberg’s optimism on SYM relies on the company’s global expansion and development in its warehouse-as-a-service joint venture.
5. Hyster-Yale, Inc. (NYSE:HY)
Analyst Upside (as of January 11): 44.83%
No. of Hedge Fund Holders: 15
Hyster-Yale, Inc. (NYSE:HY) operates through its wholly owned subsidiaries. The company manufactures robotic forklifts, trucks, and other automated material-handling products. The company has three business segments: Lift Trucks, Attachments, and Fuel Cells.
Over the past six months, Hyster-Yale, Inc. (NYSE:HY) shares have plunged more than 22%, due to lower-than-expected earnings and revenue outlook. During Q3 2024, the company missed both its earnings and revenue estimates. The company’s growth is affected by lower production volumes and supply chain constraints have cramped manufacturing operations. Moreover, the company expects a modest decline in the global lift truck market in 2025, mainly in the EMEA region, while the Americas is expected to offset the decline with moderate growth. North America is Hyster-Yale’s largest region of operation and it is expected to increase moderately in 2025 compared to 2024.
Hyster-Yale, Inc. (NYSE:HY) is investing in warehouse applications and continues to enhance its technologies and strengthen its product lineup. The company expects to gain warehouse market share, considering the potential in that segment. Moreover, the company’s $2.3 billion backlog will likely support its operations throughout 2025 until the truck market level improves. The company is positioning itself for better sales volume and outcomes for 2026 on the back of its policies made in the last couple of years.
4. AeroVironment, Inc. (NASDAQ:AVAV)
Analyst Upside (as of January 11): 37.77%
No. of Hedge Fund Holders: 22
AeroVironment, Inc. (NASDAQ:AVAV) is a technology company that designs and develops a range of robotic systems for government agencies and businesses in the US and globally. The company makes uncrewed aircraft and ground robot systems and other systems for the United States Department of Defense (DoD), and other agencies.
Considering the increasing demand for UAVs amidst the Russia-Ukraine war and other global conflicts, AeroVironment Inc. (NASDAQ:AVAV) significantly benefits from the ongoing situation. The DoD’s focus on developing and integrating advanced drone technologies such as jet drones and unmanned combat aircraft, is expected to drive higher demand for AeroVironment’s products.
During the second quarter of fiscal year 2025, AeroVironment Inc. (NASDAQ:AVAV) posted a record Q2 revenue of $188 million. The company’s Loitering Munition Systems segment also achieved record revenue of almost $78 million, a 61% year-over-year increase. The company’s backlog continues to grow due to new orders and stood at $467 million by the end of Q2 FY25. The company is well-positioned to take advantage of growing demand in the sector and secure new military orders.
3. Helix Energy Solutions Group, Inc. (NYSE:HLX)
Analyst Upside (as of January 11): 58.64%
No. of Hedge Fund Holders: 23
Helix Energy Solutions Group, Inc. (NYSE:HLX) is an international offshore energy services company specializing in various operations such as well intervention, robotics, and full-field decommissioning operations. The company runs its business through four segments: Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment.
Helix Energy Solutions Group, Inc. (NYSE:HLX) has expanded its operations across Northwest Australia. The company has long-term contracts that secure operations in the long run. Siem Helix 1 and Siem Helix 2 are 3-year contracts with Petrobras, while the Q5000 contract with Shell is a minimum 2-year 175-day deal with options in the Gulf of Mexico. By the end of Q3 2024, the company had over $800 million in backlog through new contracts. The company also has a solid cash position with nearly $324 million in cash and cash equivalents, as of Q3 2024.
Helix Energy Solutions Group, Inc.’s (NYSE:HLX) robotics division remains a driving segment for the company with high utilization across six vessels, mainly in renewables projects. The company continues to drive growth despite losing $10 million in revenues in Q3 due to relocations. Nevertheless, HLX is expected to have another good year in FY25.
2. Cognex Corporation (NASDAQ:CGNX)
Analyst Upside (as of January 11): 27%
No. of Hedge Fund Holders: 34
Cognex Corporation (NASDAQ:CGNX) provides machine vision products to address different critical manufacturing and distribution challenges. The company operates through the machine vision technology segment. Cognex’s products help to automate the manufacturing and tracking of discrete items including, mobile phones, electric vehicle batteries, and e-commerce packages.
Over the past two years, the reduction in automobile production and other markets impacted by the global economic crisis have put pressure on Cognex’s operations. In 2025, automakers are expected to improve production due to a higher demand forecast. Whereas, warehouse spending will grow again with improved demand in the e-commerce sector. In that regard, history suggests these cyclical issues settle down in time. Cognex Corporation (NASDAQ:CGNX) is well-positioned considering its machine vision technology automation is driven by AI and IoT.
Impax Global Environmental Markets Fund stated the following regarding Cognex Corporation (NASDAQ:CGNX) in its Q3 2024 investor letter:
“Cognex Corporation (NASDAQ:CGNX) (Industrial Energy Efficiency, U.S.) sold off in the third quarter following a negative market reaction to the release of Q2 results. The share price had been moving higher throughout most of 2024 in anticipation of a recovery from factory automation weakness, with green shoots indicating abating headwinds and earnings normalization. While Q2 earnings exceeded expectations, below consensus Q3 guidance, management’s shift to a more cautious tone, and concerns of a weaker macroeconomic backdrop for this shorter-cycle, economically sensitive business, all contributed to a sharp sell-off. Despite a potential interruption of sequential improvement in their recovery, the long-term thesis remains intact.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Analyst Upside (as of January 11): 28%
No. of Hedge Fund Holders: 193
NVIDIA, whose primary business revolves around designing and manufacturing GPUs, is disrupting the broader market due to its AI technology. Similarly, NVIDIA is playing a big role in autonomous machines and AI-enabled robots through its technology. The demand for AI-enabled robots is at record levels and continues to grow. NVIDIA Corporation’s (NASDAQ:NVDA) three-computer solution allows AI robots to learn and perform complex tasks with precision. Businesses are utilizing Nvidia Robotics’ full-stack, accelerated cloud-to-edge systems, and optimized AI models to train, operate, and optimize their robot systems and software.
On January 6, NVIDIA Corporation (NASDAQ:NVDA) introduced its Isaac GR00T Blueprint which will assist developers to generate exponentially large synthetic datasets to train their humanoids using imitation learning. Over the next two decades, the humanoid robots industry is anticipated to cross $38 billion, which creates a huge opportunity for NVIDIA to exploit the growing market.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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