The robotic revolution is well underway. Robotics are creeping their ways into our lives in both obvious and unexpected ways. From home robots designed to bring us drinks and tell us the weather, to robots filling orders in warehouses and drones flying packages to our houses, robots are proliferating. The rise of artificial intelligence (AI) is expected to further fuel the proliferation of robotics in the years ahead. According to market research firm Statista, revenue from the worldwide robotics market is projected to reach just under $35 billion in 2023 and swell to nearly $45 billion over the next four years. In the future, robots will perform more work and tasks for humans as the world we live in becomes increasingly automated. Here are three top robotics growth stocks for investors to consider buying.
E-commerce giant Amazon (NASDAQ:AMZN) might not be the first company that comes to mind when one thinks of robotic stocks. However, the Seattle-based giant is rapidly growing its presence in the robotics space. Currently, Amazon is in the process of acquiring iRobot (NASDAQ:IRBT) for $1.7 billion, or $61 per share in cash. With its robotic Roomba vacuum cleaners, iRobot is arguably one of the best-known robotics companies in the world among consumers.
Amazon’s purchase of iRobot is currently running a gauntlet of regulatory approvals. The acquisition comes after the company introduced its “Astro” smart home robot that is designed to help people with small chores and tasks. The Astro robot can map out floor plans, respond to basic commands, and recognize human faces. The home robot can also answer questions, play music, and display the weather for people. Beyond home robots, Amazon is also developing and deploying an army of delivery drones to get its products to homes and businesses worldwide.
The company’s increasing focus on robotics might help boost its growth, which has been flagging coming out of the pandemic. Over the past 12 months, AMZN stock has declined 37% to trade at $93. However, so far in 2023, its share price has recovered 12.5%, providing a glimmer of hope to investors.
Lockheed Martin (LMT)
Like Amazon, defense contractor Lockheed Martin (NYSE:LMT) is not a pure-play robotics company. However, LMT remains a major player in the field.
This is because robots are increasingly becoming the norm in military and combat operations around the world. Robots today are used in military operations to perform dangerous tasks ranging from reconnaissance missions behind enemy lines and dismantling mines and explosive devices to flying unmanned fighter jets. Robots are the future of warfare.
And Lockheed Martin is leading the race when it comes to developing robots for use in military operations. The company has even developed a robotic mule, at a cost of $500,000 each, that carries soldiers’ equipment for them while on missions, taking heavy gear off the backs of human soldiers. The use of robots by the U.S. military has grown so much that robotic dogs are now being used to patrol the base at Cape Canaveral, Florida, though another company makes those robot dogs.
Still, when it comes to building military robots of the future, few companies can touch Lockheed Martin. The company is even taking its robots into outer space.
Intuitive Surgical (ISRG)
Looking to the world of medicine, we come to Intuitive Surgical (NASDAQ:ISRG). The California-based company makes robots that are used by doctors to carry out minimally invasive surgeries. Its main robotics product is the “da Vinci Surgical System” that is used to carry out operations on body parts, incluing prostates and hearts. Controlled by a surgeon, the robotic surgical system can repair damaged heart valves in patients.
Intuitive Surgical sells the da Vinci Surgical System for $1.5 million. The company also makes money through maintenance contracts and expenditures on instruments that are used during surgeries, many of which can only be used once. The company is a global leader when it comes to employing robotics in surgical procedures.
Intuitive Surgical continues to grow at a brisk clip, earning $1.3 billion of net income during 2022, double the amount that it generated in 2017. Analysts, on average, expect its earnings to grow as much as 16% in 2023.
ISRG stock has fallen 21% over the past 12 months. However, the stock is up 67% over the last five years and has gained more than 200% in the past decade.