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 NVIDIA Corporation (NASDAQ:NVDA) 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 operating a robotic arm on a production line of semiconductor chips.
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).
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.
Overall, NVDA ranks 1st on our list of Cheap Robotics Stocks to Invest in Now. 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 time frame. 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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Disclosure: None. This article is originally published at Insider Monkey.
