In this article, we will be discussing the best robotics stocks under $10. Before we move on to our list, we will take a look at the market outlook for robotics.
The concept of lifelike machines performing human tasks is fascinating to some and unsettling to others. However, robotics is not about replacing humans; it’s about automating repetitive tasks to allow people more time for meaningful activities. Recent breakthroughs, such as generative artificial intelligence (AI) services like ChatGPT, have accelerated the adoption of automation in organizations. Robotics is already transforming our everyday lives, from manufacturing and logistics to MedTech and even our homes, thus revolutionizing numerous industries and streamlining production lines in manufacturing. Most people interact with robots in some capacity. For example, Sony Group Corporation offers the AIBO series, an autonomous entertainment robot for the home, while iRobot Corporation provides Roomba robot vacuums for home cleaning. Additionally, companies like Alibaba Group Holding Limited and Amazon.com, Inc. use robots to automate warehouse management and customer product delivery.
According to Market Research Future, the global robotics market reached $59.7 billion in 2022 and is on an impressive growth trajectory. The market is expected to exceed $200 billion by 2030, driven by a projected 16.1% CAGR between 2023 and 2030. This growth reflects increasing robotics integration across various sectors. Reflecting this growth, a recent press release from the International Robot Federation (IFR) highlights significant investments in automation by U.S. manufacturing companies, with industrial robot installations rising by 12% to 44,303 units in 2023. The automotive industry emerged as the leading adopter of robots in the U.S., followed by the electrical and electronics sectors. The IFR reports that sales in the automotive segment increased by 1% in 2023, with a record 14,678 robots installed, building on a 47% increase in 2022 with 14,472 units installed.
The robotics industry thrives on healthy debates, and one of the most intense recent discussions centers around humanoid robots. Although this topic has been significant for decades, the rise of startups like 1X and Figure, along with projects from established companies like EV market leader Tesla, has brought humanoids back into the spotlight. Advocates argue that since our world is designed for humans, building robots in our image makes sense. Humanoid robots offer advantages in reach, the ability to navigate stairs, and dexterity.
In this context, the robotics industry has garnered attention from notable tech figures. Earlier this year, Bill Gates highlighted several “cutting-edge robotics startups and labs” that excite him, including three companies focused on developing humanoids. Gates started off with Agility Robotics, an American startup that has developed a human-centric, multipurpose robot designed for logistics work. This robot, roughly human-sized, can handle heavy loads and express “emotions” through LEDs on its face to improve interaction with human colleagues. Another notable initiative is Tevel, an Israeli startup deploying autonomous flying robots for continuous selective fruit picking, ensuring ripe apples are harvested around the clock. Gates also mentioned Apptronik, whose robots have the potential to assist astronauts on Moon or Mars missions.
Our Methodology
For this list, we sifted through various ETFs and internet rankings covering robotics stocks to compile an initial list. We then selected the top robotics stocks that were trading under $10 based on overall hedge fund sentiment toward each stock. This assessment was made using data from Insider Monkey’s database, which tracks 919 elite hedge funds as of the end of the first quarter of 2024. The list is organized in ascending order according to the number of hedge fund holders in each firm. Why do we track stocks that hedge funds pile into? 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).
8. Nauticus Robotics, Inc. (NASDAQ:KITT)
Share Price as of June 11: $0.27
Number of Hedge Fund Holders: 1
Nauticus Robotics, Inc. (NASDAQ:KITT), based in the Houston area, specializes in developing ocean robots, autonomy software, and services for the ocean industries. Nauticus delivers its robotics products and services to both commercial and government customers through a Robotics-as-a-Service (RaaS) business model, as well as through direct sales of hardware platforms and software licenses. In addition to standalone services and products, the company has developed a range of technology solutions for retrofitting and upgrading legacy systems and other third-party vehicle platforms.
Earlier this February, Nauticus Robotics, Inc. (NASDAQ:KITT) secured the first tranche of financing before the end of 2023, which reportedly eliminated many of the dilutive warrants and ratchet provisions of the original de-SPAC financing. This new investment is expected to accelerate the certification of Nauticus’ Aquanaut robot, which transforms tethered ROV operations into fully autonomous ones. The flagship robot is set to perform various tasks in water depths ranging from 200 to over 2000 meters in preparation for its inaugural job inspecting a deep-water production facility for a major oil and gas company in the Gulf of Mexico. The company expects to generate daily revenue from the Aquanaut Mark 2 vehicle from Q3 2024.
During Q1 2024, Nauticus Robotics, Inc. (NASDAQ:KITT) initiated the final assembly of Vehicle 1 and plans to begin testing with Florida Atlantic University in Q2, potentially reducing monthly certification costs by up to 90%. The assembly of Vehicle 3 is pending and will commence once the first two vehicles are revenue-generating.
7. Myomo, Inc. (NYSE:MYO)
Share Price as of June 11: $3.69
Number of Hedge Fund Holders: 3
Myomo, Inc. (NYSE:MYO), based in Boston, Massachusetts, is a medical robotics company that enhances mobility for individuals with neurological disorders and upper-limb paralysis. The company has developed and patented arm braces designed to restore function in paralyzed or weakened arms.
For the first quarter of 2024, Myomo, Inc. (NYSE:MYO) reported revenue of $3.8 million, a 9% increase compared to the first quarter of 2023. This growth was driven by a higher number of units sold, although it was partially offset by a lower average selling price (ASP). The company recognized revenue on 91 MyoPro units in Q1 2024, a 14% increase from the same quarter the previous year. Additionally, as of March 31 of this year, the company’s MyoPro pipeline included 1,112 patients, a 30% increase from 855 patients in Q1 2023. A record 493 patients were added to the pipeline in Q1 2024, a 12% increase from the same quarter in the past year.
Orin Hirschman’s AIGH Investment Partners came in as the leading shareholder in Myomo, Inc. (NYSE:MYO), with stakes valued at over $9.16 million at the end of the first quarter of 2024.
6. ReWalk Robotics Ltd. (NASDAQ:LFWD)
Share Price as of June 11: $4.65
Number of Hedge Fund Holders: 3
ReWalk Robotics Ltd. (NASDAQ:LFWD), now rebranded as “Lifeward” since January, specializes in the development, manufacturing, and marketing of wearable robotic exoskeletons for individuals with lower limb disabilities due to spinal cord injury or stroke. Established in 2001, the company operates from headquarters in the United States, Israel, and Germany.
In the first quarter of 2024, ReWalk Robotics Ltd. (NASDAQ:LFWD) reported revenues of $5.3 million, a significant increase from $1.2 million in the same period in 2023, reflecting a rise of $4.1 million, or 340%. Revenue from the sale of products under the former ReWalk brand reached $2.5 million, up $1.3 million or 90% year-over-year. This growth was largely driven by increased ReWalk system sales due to expanded access through Medicare payments. In addition, revenue from the company’s AlterG products and services amounted to $2.8 million. However, AlterG’s revenue was temporarily impacted by the Q1 2024 integration and training of the former ReWalk and AlterG commercial teams, which reduced sales capacity during this period. That said, company anticipates that the completed sales training and integration in Q1 2024 will enhance sales effectiveness and productivity in Q2 2024.
According to Insider Monkey, Nevada-based investment firm Kent Lake Capital is a major shareholder in ReWalk Robotics Ltd. (NASDAQ:LFWD), holding 157,361 shares valued at over $822,998. By the end of the first quarter of 2024, 3 hedge funds tracked by Insider Monkey held stakes worth $905,000 in ReWalk Robotics Ltd. (NASDAQ:LFWD), down from 4 funds in the previous quarter.
5. Arbe Robotics Ltd. (NASDAQ:ARBE)
Share Price as of June 11: $1.93
Number of Hedge Fund Holders: 4
Arbe Robotics Ltd. (NASDAQ:ARBE), a semiconductor company, specializes in 4D imaging radar solutions for Tier 1 automotive suppliers and manufacturers globally, including in China, Hong Kong, Sweden, Germany, the United States, and Israel. The company offers advanced radar chipset solutions that address critical issues in autonomous driving and autopilot systems, such as detecting stationary objects, identifying vulnerable road users, operating in poor lighting conditions, and eliminating false alarms. Founded in 2015, Arbe Robotics is headquartered in Tel Aviv-Yafo, Israel.
In an April 3 research note, Roth MKM analyst Suji Desilva discussed Arbe Robotics Ltd.’s (NASDAQ:ARBE) cutting-edge 4D imaging radar system, stating that “We believe that ARBE’s advanced 4D imaging radar can gain share in the existing multi-billion-dollar automotive radar market and grow in the diversifying non-automotive markets as well.” The analyst noted the company’s engagement with several potential customers interested in their 4D imaging radar technology for 2024, highlighting Arbe’s strong positioning for advanced radar opportunities across various markets and geographies. Arbe’s long-standing collaborations with prominent Chinese automotive part manufacturers are seen as advantageous, as these partnerships may lead to successful integration of high-quality radar technology in Chinese vehicles. Additionally, Desilva pointed out that Arbe Robotics Ltd.’s (NASDAQ:ARBE) “remains engaged with multiple global auto OEMs increasingly focusing on advanced ADAS platforms and models.” Consequently, Desilva maintained a “Buy” rating on the company and raised the price target from $2 to $4.
As of the end of the first quarter of 2024, 4 hedge funds tracked by Insider Monkey held stakes in Arbe Robotics Ltd. (NASDAQ:ARBE), with a combined value of $1.5 million, up from $1.24 million in the previous quarter.
4. Accuray Incorporated (NASDAQ:ARAY)
Share Price as of June 11: $1.74
Number of Hedge Fund Holders: 11
Accuray Incorporated (NASDAQ:ARAY) is a healthcare company specializing in the design, development, manufacturing, and sale of radiosurgery and radiation therapy systems for tumor treatment. Their notable product, the CyberKnife System, is a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for treating primary and metastatic tumors outside the brain.
In the third quarter, Accuray Incorporated (NASDAQ:ARAY) reported a loss of $6.3 million, or $0.06 per share, a significant drop from its profit of $0.01 per share in the same period the previous year. This loss was greater than analysts’ expectations, who had predicted a loss of $0.01 per share. Revenue also fell by 14.3% year-over-year to $101.1 million, missing the estimated $113.65 million.
Despite these setbacks, the company reported a positive development with a 21% increase in gross orders, reaching $89.1 million, and a significant improvement in its book-to-bill ratio, which rose to 1.8 from 1.2 the previous year. Looking ahead, Accuray’s management projected FY 2024 revenue to be between $432 million and $437 million, with adjusted EBITDA ranging from $19 million to $22 million.
Notably, following the earnings miss, Accuray Incorporated (NASDAQ:ARAY) Board Chair Joseph E. Whitters purchased 100,000 shares of the company at a total of $156,050, marking the largest insider buy since 2014.
At the end of the first quarter of 2024, 11 hedge funds tracked by Insider Monkey held stakes in Accuray Incorporated (NASDAQ:ARAY). The largest hedge fund stakeholder was Constantinos J. Christofilis’s Archon Capital Management, with holdings valued at $16.08 million.
3. Lantronix Inc (NASDAQ:LTRX)
Share Price as of June 11: $3.66
Number of Hedge Fund Holders: 17
Lantronix, Inc. (NASDAQ:LTRX), ranked among the top three robotics stocks under $10 on our list, provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure worldwide. In addition to developing its own advanced kits and hardware designs, Lantronix collaborates with customers to implement various AI and machine learning solutions. Founded in 1989, the company is headquartered in Irvine, California.
In its third-quarter 2024 report, Lantronix posted an EPS of $0.11 and revenue of $41.2 million, the latter being up 11% sequentially and up 25% on a YoY basis, surpassing analysts’ expectations and aligning with the company’s outlook. For the current quarter, Lantronix, Inc. (NASDAQ:LTRX) expects revenue to be between $46.5 million and $51.5 million, with EPS ranging from $0.12 to $0.18.
As of the end of March, 17 hedge funds in our database were bullish on Lantronix, Inc. (NASDAQ:LTRX). George McCabe’s Portolan Capital Management holds the largest position, with 578,180 shares.
Wasatch Micro Cap Value Strategy stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its first quarter 2024 investor letter:
“Another significant detractor was Lantronix, Inc. (NASDAQ:LTRX), which provides integrated software and application development, software as a service (SaaS) management, intelligent edge computing and a wide range of sensors and trackers. The stock moved higher early in the quarter based on expectations for strong revenues and earnings. But when the numbers were released later in the quarter, the stock plummeted because Lantronix failed to meet expectations. While we were disappointed along with other investors, we note that revenues and earnings did in fact increase—albeit modestly. Considering the attractive valuation currently, we’ve maintained our position in the company.”
2. iRobot Corporation (NASDAQ:IRBT)
Share Price as of June 11: $9.67
Number of Hedge Fund Holders: 17
iRobot Corporation (NASDAQ:IRBT) focuses on smart home appliances, offering a variety of robotic solutions such as vacuum cleaners and floor mapping robots. Their product lineup also includes handheld vacuum cleaners and a programmable platform for their robots.
After a planned merger with Amazon fell through, IRBT shares experienced record short interest, causing per-share prices to drop by more than 75% since January 1. Amazon’s interest in iRobot Corporation (NASDAQ:IRBT) wasn’t driven by vacuum sales but by the company’s advanced technology and intellectual property. Despite the failed merger, iRobot retains its valuable IP portfolio, which could lead to significant gains either through its operations or a potential alternative buyout.
In addition, the first quarter saw iRobot Corporation (NASDAQ:IRBT) reporting a GAAP net income per share of $0.30, a substantial improvement from a net loss per share of $2.95 in Q1 2023. This result significantly surpassed analyst expectations of a $2.01 loss per share. The non-GAAP net loss per share came in at $1.53, an improvement from the previous year’s $1.67 and closer to analyst predictions. These results were positively impacted by a $75 million termination fee paid by Amazon, marking a strategic gain during ongoing restructuring.
According to Insider Monkey’s database, 17 hedge funds held stakes in iRobot Corporation. D. E. Shaw had the largest position with 1.19 million shares valued at approximately $10.49 million.
1. Aurora Innovation, Inc. (NASDAQ:AUR)
Share Price as of June 11: $2.36
Number of Hedge Fund Holders: 27
Topping our list of the best robotics stocks under $10 is Aurora Innovation, Inc. (NASDAQ:AUR), a company based in Pittsburgh, Pennsylvania, specializing in self-driving vehicle technology, a crucial component for autonomous vehicles.
On May 20 at the ACT Expo in Las Vegas, Aurora Innovation, Inc. (NASDAQ:AUR) and Volvo Autonomous Solutions unveiled the Volvo VNL Autonomous truck, which Aurora plans to begin hauling freight with in the coming months. This unveiling is a significant step toward Aurora Innovation, Inc. (NASDAQ:AUR)’s goal of commercializing self-driving trucks by the end of 2024. Initially, the company plans to transport freight between Dallas and Houston using up to 20 fully autonomous Class 8 trucks, with no human drivers on board.
The partnership with Volvo, established in March 2021, is a key component of Aurora Innovation, Inc. (NASDAQ:AUR)’s commercialization strategy. The company has also initiated pilot programs with logistics companies such as FedEx, Ryder, Schneider, and Uber Freight. Earlier this January, Aurora Innovation, Inc. (NASDAQ:AUR) and automotive supplier Continental completed the first phase of a project exceeding $300 million to mass-produce hardware for commercial self-driving trucks. The two companies finalized the design and system architecture for an autonomous vehicle hardware kit and developed a secondary computer system capable of taking over operations in case of a failure.
As of Q1 2024, 27 hedge funds held stakes in Aurora Innovation, Inc. (NASDAQ:AUR), according to Insider Monkey’s database of 919 hedge funds. These held a consolidated stake value of $160.8 million in the company.
While we acknowledge the potential of Aurora Innovation, Inc. (NASDAQ:AUR), 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 AUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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