We recently published a list of the 10 Best Robotics Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Zebra Technologies Corporation (NASDAQ:ZBRA) stands against the other robotics stocks held by billionaires.
Robotics Market Outlook
The robotics industry has grown modestly over the past few years. Robotic companies are growing faster than ever, driven by advancements in technology since the emergence of AI. Especially, humanoid robots are rapidly growing in the global market, driven by AI. According to Goldman Sachs’ research, the total addressable market for humanoid robots is projected to cross $38 billion by 2035, a massive upgrade from its previous forecast of $6 billion in 2023.
READ ALSO: 10 Cheap Robotics Stocks To Invest In Now
Morgan Stanley expects the humanoid robot units to reach 40,000 by 2030 and cross 63 million by 2050. Citigroup is even more bullish, anticipating a $7 trillion humanoid robot market by 2050, with 1.19 billion humanoid robots in operation. Adam Jonas from Morgan Stanley expects humanoid robots to be a multi-decade, trillion-dollar opportunity as the adoption could accelerate faster for autonomous vehicles.
In 2023, the new World Robotics report noted around 4.28 million units operating in factories globally, growing by 10% compared to 2022. Annual installations surpassed half a million units for the third consecutive year. Asia remains the hot region for robots, with 70% of all newly deployed robots in 2023 installed in Asia. China, Japan, South Korea, and India are some of the largest robotics markets in the world. China leads the market, recording 276,288 industrial robots installed in 2023, representing 51% of the global installations. The U.S. has the largest robotics market in the region, accounting for 68% of installations in the Americas in 2023.
The U.S. stock market has been under pressure due to tariffs as the broader market has plunged over 4.50% year-to-date. At the same time, Global X Robotics & Artificial Intelligence ETF (BOTZ) and Robo Global Robotics and Automation Index ETF (ROBO), which returned over 11% in 2024, have dropped nearly 10% and 7% year-to-date, respectively. Despite the market facing political headwinds, robotics stocks hold great promise, considering the rising demand for humanoids and automation systems.
An overhead view of an electronic manufacturing plant, its intricate machinery and precision automation in action.
Our Methodology
To compile our list of the best robotics stocks to buy according to billionaires, we looked for the robotics and automation companies widely held by billionaires. Data for the billionaire holders for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 10 best robotics stocks to buy were ranked in ascending order based on the billionaire investors holding stakes in them. We have also mentioned the number of hedge funds holding each stock as of Q4 2024.
Why are we interested in the 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Zebra Technologies Corporation (NASDAQ:ZBRA)
No. of Billionaire Investors: 11
No. of Hedge Fund Holders: 45
Zebra Technologies Corporation (NASDAQ:ZBRA) has emerged as one of the top robotics companies. It is engaged in the Automatic Identification and Data Capture (AIDC) industry. The company assists organizations to monitor, anticipate, and accelerate workflows by empowering their frontline and ensuring that everything is connected and fully optimized. The company operates globally in industries including retail, manufacturing, transportation and logistics, and healthcare. Zebra operates in more than 100 countries, and its customers include over 80% of the Fortune 500 companies.
Zebra Technologies Corporation acquired Fetch Robotics for $290 million in 2021, and since then, it has been aggressively expanding its presence in the robotics industry. Recently, the company acquired Photoneo, a market leader in the 3D machine vision solutions industry. Photoneo is a well-known developer of robotic vision and intelligence solutions. This acquisition adds to Zebra’s high-value 3D machine vision use cases for clients in automotive manufacturing, logistics, and other key industries.
Zebra Technologies Corporation (NASDAQ:ZBRA) had a solid end to 2024, with a 32% year-over-year increase in sales for Q4, surpassing $1.3 billion. For the full year, the company achieved a revenue of $4.68 billion, exceeding the estimated $4.96 billion. The company saw strong double-digit sales growth across all regions, especially in the Americas. Zebra Technologies made notable developments in diversifying its supply chain, minimizing its reliance on China, and mitigating tariff impacts.
Overall ZBRA ranks 7th on our list of the robotics stocks to buy according to billionaires. While we acknowledge the potential of ZBRA as an investment, 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 ZBRA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
