Investment potential looks promising as robotics companies integrate AI into their products
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The pairing of artificial intelligence (AI) and robotics may invoke sci-fi imagery, but the two technologies intertwine to maximize the tech industry’s potential. As automation expands across various industries, from agriculture to defense, the combination of AI and robotics could provide a $36.78 billion market by 2030 market. Thus, companies pursuing this venture are classified as AI robotics stocks, due to contributing to the integration of the technologies.
For investors, determining if one of these experimental applications of AI presents a successful investment opportunity comes from two factors. First, does the company currently serve a customer base in need of integrated AI robotics? Second, how much value do the products offered by the company provide to shareholders, customers, and the market overall?
With these two questions, investors can more accurately predict a company’s commercial success or research obscurity. Thus, here are three stocks currently pioneering novel combinations of AI and robotics in their respective sectors.
Textron Inc. (TXT)
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Though much of the buzz around AI robotics stems from commercial industries, investors should keep defense contractors in mind. One such notable company is Textron Inc. (NYSE: TXT), with its high-potential projects in combat robotics. Seeing success with several prior bids to the U.S. military, Textron’s various subsidiaries are winning long-term contracts left and right.
Now, with its M5 Ripsaw platform selected for testing by the U.S. Army, Textron’s AI robotics projects are ramping up. This robotic platform resembles a self-driving tank and competes with other defense contractors in the Army’s Robotic Combat Vehicle Program. Should Textron win the program, its value will likely continue to increase.
Furthermore, Textron’s healthy financials and current PE ratio of around 20.60 suggest the company may be somewhat undervalued among defense contractor stocks. Thus I believe Textron is among the strongest AI robotic stocks to buy right now.
UiPath (PATH)
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From its humble beginnings in Romania to its 10,800+ customers today, UiPath (NYSE: PATH) represents a growing AI company. The company focuses, mainly on robotic process automation software to monitor user activity and automate repetitive tasks. As such, UiPath offers its customers efficient cost-saving services.
For the last two decades, UiPath has been growth-focused, meaning it has struggled to turn a profit, yet change seems to be on the way. As of its Q4 earnings report for 2023, the company finally achieved its first quarter of GAAP profitability. Moreover, UiPath’s customers continued to increase spending last year, meaning they see the services as effective.
For investors, UiPath’s current dip in stock price and overall potential make it a solid buy at the moment with generous long-term potential. Once the company becomes consistently profitable, likely, its value will only continue to grow.
Deere & Company (DE)
Revolutionizing Agriculture: Deere & Company’s Quest for Robotic Innovation
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When you think of innovation, do tractors and combines come to mind? Most likely not, but Deere & Company (NYSE:DE) is on a mission to change that perception. Embracing the future with projects in autonomous tractors and machine learning, Deere envisions a world where robot tillers roam the fields by 2030.
The Path to Profits Amid Controversy
With a PE ratio of 11.4, Deere & Company’s stock price appears poised for further growth. Despite facing criticism from farmers over the company’s tractor maintenance methods, Deere remains steadfast in its pursuit of profitability above all else.
Steady Revenue Growth Signals Potential
Deere & Company has witnessed a commendable year-on-year revenue increase of 16.47%. While the average retail investor may not have much interaction with farm equipment, it is conceivable that DE could one day achieve the status of a household name, akin to Tesla’s endeavor to revolutionize personal electric vehicles.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The views expressed in this article belong to the author and are subject to the InvestorPlace.com Publishing Guidelines.
