The global robotics industry is taking off, and investors are keeping a close eye on high-potential robotics stocks.
Robotics and automation are going to transform the everyday lives of both humans and businesses.
AI technologies such as natural language processing, generative adversarial networks, and edge computing will ultimately spearhead growth.
The global robotics market should reach more than $200 billion by 2030, growing at a CAGR of 22.80% (Market Research Future, 2021).
This high double-digit growth should not be overlooked, and will certainly make a lot of investors very rich.
Below are my top three must-buy robotics stocks for 2023.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) stock soared on Thursday, August 3rd after reporting its Q2 2023 financial results.
The company saw its net sales up 11% year-over-year, as they ramped up their offerings for same-day and one-day delivery for U.S. prime members.
Net income came in at $6.75 billion, while generating $7.9 billion in free-cash-flow from operations.
A significant improvement from negative free-cash-flow of $23.5 billion in the trailing twelve months prior.
EPS (Earnings Per Share) came in at $0.65, up 425% year-over-year.
After a tumultuous year of slow growth in 2022, the company is beginning to re-focus its efforts on customer experience and generative AI.
CEO Andy Jassy, said that the company is focused on lowering costs to serve its fulfillment network.
They are also concentrating on AWS cloud deployment, with new workloads to serve its robust generative AI strategy.
Their suite of AI products include; AWS Tranium, AWS Inferentia, AWS Bedrock, and Codewhisperer.
Amazon expects net sales between $138 to $143 billion in Q3 2023, representing a 9-13% increase year-over-year.
As the company re-focuses its efforts on cost-cutting and generative AI, its long term growth prospects to serve the robotics market should not be ignored.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) stock has been on a tear in 2023, thanks to wall street’s optimism on artificial intelligence.
Investors have been overly optimistic on Nvidia, as the company ramps up its focus on accelerated computing and generative AI.
The company is currently at the forefront of a technological transition that is the largest since the birth of the internet in the 2000s.
Nvidia’s advanced graphics processing units will help accelerate AI workloads for the gaming, robotics, energy storage and automotive sector.
Their robotics platform, Nividia Isaac, has the potential to be the market leader to address end-to-end solutions for the robotics industry.
After reporting their Q1 FY2024 earnings results, the company’s EPS (Earnings Per Share) was up 28% year-over-year.
Net income came in at $2.04 billion, up 26% year-over-year.
Despite posting strong quarterly financial results, the market may be pricing in too much optimism for Nvidia.
Nvidia is currently trading at 43X its FY2024 sales, with a forward price to earnings ratio (P/E) of 60.
To say Nvidia’s valuation is rich would be an understatement.
However, that doesn’t necessarily mean that the stock is a sell.
Despite the company’s lofty valuation, investors should be aware that Nvidia’s AI growth story is only just beginning.
You might want to consider holding off on buying the stock until it finds a bottom or dollar-cost-averaging for the long term.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is the current market leader in robotics-assisted surgeries.
Its flagship Da Vinci surgical system is used in more than 8,000 hospitals globally.
As of June 2023, the company has performed over 13 million surgeries through its Da Vinci system.
In Q2 2023, the company saw strong revenue growth of 15% year-over-year.
EPS came in at $1.18, up 38% year-over-year.
IRSG has continued to see growth in its core business segments, driven by increased demand for robotics-assisted surgery.
Both systems revenue and Da Vinci surgical systems revenue were up sequentially.
Furthermore, Intuitive Surgical has a recurring revenue model that has grown from 70-79% of total revenue from 2015-2022.
While the company works to increase its product offerings, there is room for EBITDA margin expansion.
Make no mistake, the healthcare industry will be transformed by the AI revolution.
This bodes well for Intuitive Surgical, as the company looks to expand its reach across the globe.
As demand remains high for robotics-assisted surgery, Intuitive Surgical is one of the top robotics stocks to buy on dips for 2023.
On the date of publication, Terel Miles 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.
