We recently compiled a list of the 10 Cheap Robotics Stocks to Invest In Now. In this article, we are going to take a look at where Lantronix, Inc. (NASDAQ:LTRX) stands against other robotics stocks to buy 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.
You can also visit and see the 12 Best Penny Stocks to Invest in According to the Media.
A technician installing a complex of microcontrollers and internet of things devices inside a server rack.
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).
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.”
Overall, LTRX ranks 8th on our list of Cheap Robotics Stocks to Invest in Now. While we acknowledge the potential of LTRX to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LTRX 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. This article is originally published at Insider Monkey.
