3 AI Robotics Stocks Worth Taking a Stake In
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.
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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)
Source: dennizn / Shutterstock.com
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)
Source: Jim Lambert / Shutterstock.com
Most people probably don’t think of tractors and combines as the forefront of AI and robotics, but Deere & Company (NYSE:DE) aims to change that. With new projects in autonomous tractors and machine learning in the works, the company wants to build a world of robot tillers by 2030.
The company also currently has a PE ratio of 11.4, suggesting that the stock price still has room to grow. Though Deere & Company’s approach to tractor maintenance has been controversial amongst farmers, it’s clear that the company prioritizes profitability above all else.
Also of note, Deere & Company has seen steady revenue growth, increasing by 16.47% year on year. In my opinion, though most retail investors hardly ever interact with farm equipment, DE could someday become a household name. Much like how Tesla (NASDAQ:TSLA) is attempting to revolutionize the personal electric vehicle, Deere & Company could revolutionize agricultural automation.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.
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