15 Best Humanoid Robot Stocks That Will Ride A $30 Trillion Opportunity According To Morgan Stanley

9. Baker Hughes Company (NASDAQ:BKR)

Number of Hedge Fund Investors  in Q1 2024: 43

Baker Hughes Company (NASDAQ:BKR) is the third oil and gas exploration and production equipment provider on our list of the top beneficiaries of humanoid robots – a fact that underscores the potential of robots to disrupt this industry. However, unlike its peers, more than 75% of Baker Hughes Company (NASDAQ:BKR)’s revenue is exUS, which allows it to maintain a diversified customer base. This helps protect against US specific downturns, which have impacted rival Halliburton in 2024. Baker Hughes Company (NASDAQ:BKR)’s financial and stock performance depends on its ability to land large orders and keep margins under control. Additionally, and perhaps crucially, it has also introduced diversification into the business model through its Industrial and Energy Technology business division. This business offers products to other industries, such as paper manufacturing and power generation – allowing Baker Hughes Company (NASDAQ:BKR) to maintain income statement stability in case of an oil downturn.

Baker Hughes Company (NASDAQ:BKR)’s management commented on this business in its Q2 2024 earnings call. Here is what it said:

“For the second consecutive quarter, IET outperformed our EBITDA guidance, mostly attributed to excellent conversion of Gas Tech Equipment backlog that drove revenue and margin upside. IET orders were strong at $3.5 billion with non-LNG Gas Tech Equipment accounting for 97% of the total. Year-to-date, we’ve now booked $6.4 billion of IET orders and we remain on track to achieve our guidance range $11.5 billion to $13.5 billion. The versatility and differentiation of the IET portfolio across Industrial and Energy segments remains a significant competitive advantage for Baker Hughes, allowing us to profitably grow with new customers and applications.”