Technological advancements have expanded our capabilities. These developments enable higher productivity, quicker access to information, and new solutions to long-standing problems. It has led to the rise of robotics stocks to buy.
Robotics is an emerging industry that has great promise. For instance, industrial robotics is projected to achieve an 18.9% compounded annual growth rate from now until 2033. That type of growth reverberates across other segments within the robotics industry and can create attractive opportunities for investments.
The stock market is filled with many choices, including robotics. It’s no secret that some robotics stocks are better than others. Investors who find high-growth businesses with promising long-term prospects have a better chance of outperforming the market.
Investors looking to strengthen their portfolios may want to consider these up-and-coming robotics stocks.
Symbotic (SYM)
Symbotic (NASDAQ:SYM) produces artificial intelligence robots that can streamline warehouse logistics and increase productivity. These robots can find items in a warehouse and move them quickly to their intended destinations.
These robots work alongside humans to enable more accuracy and efficiency in a warehouse. Symbotic partnered with Walmart to enhance the retailer’s warehouse efficiency with its robots.
Symbotic experienced surging demand based on revenue from the third fiscal quarter. In that quarter, revenue jumped from $176 million to $312 million, representing a 77.3% year-over-year gain.
The robot producer’s adjusted EBITDA losses also improved, going from a $22 million loss to a $3 million loss. The firm projects $290 million to $310 million in Q4 revenue and EBITDA ranging from breakeven to a $3 million gain. The $300 million revenue midpoint represents 22.7% year-over-year growth.
The company also uses its artificial intelligence solutions to assist businesses in the wholesale and food & beverage industries. Symbotic is a small company with plenty of potential in the robotics industry.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is up by 12% year-to-date and has gained 59% over the past five years. The stock has a market cap of over $100 billion and has a 53-forward P/E ratio.
Intuitive Surgical uses robotics to assist with minimally invasive surgery. This technology enables easier procedures for surgeons and patients. The company’s da Vinci surgical system increases effectiveness and is a mainstay in the industry.
da Vinci proceeders jumped 22% year-over-year worldwide, and the company reported double-digit year-over-year revenue and earnings growth. Second-quarter revenue was up by 15% year-over-year, while GAAP net income rose by 36.7% year-over-year.
Looking at more of the stock’s history demonstrates how much interest is in the stock. Shares gained over 500% from January 2015 to December 2021. While those gains are in the rearview mirror, investors can feel confident about future performance given the company’s wide adoption, growing markets, and strong financials.
Nvidia (NVDA)
Robotic devices use artificial intelligence to perform their tasks smoothly. Artificial intelligence depends on AI chips produced by companies like Nvidia (NASDAQ:NVDA). Nvidia’s chips power ChatGPT and many of the other companies that depend on artificial intelligence to operate.
Nvidia Isaac gives the corporation a more direct path to the robotics industry. Nvidia Isaac helps with robot training and enables smart automation in manufacturing. This service can help with industrial and commercial robot development so the machines can perform tasks effectively.
Nvidia has been a top-performing stock for shareholders, generating a 221% year-to-date gain and a 556% return over the past five years. The stock has looked overvalued in the past, and a 111 P/E ratio is still on the high end.
However, the high valuation should smooth out quickly, given the company’s otherworldly 843.3% year-over-year net income growth. Revenue also doubled year-over-year, and the company reported exceptional guidance that beat expectations.
I expressed my concerns when the stock’s P/E ratio was 250. However, the current valuation combined with future growth opportunities makes the stock a more compelling pick.
The stock has a more reasonable 47-forward P/E ratio that can become even more reasonable if the company continues its path of utter dominance in its earnings reports. Nvidia is exhibiting incredible financial strength. Investors should eventually expect decelerating revenue and net income growth rates. However, this deceleration remains to be seen, and current prospects look captivating.
On the date of publication, Marc Guberti 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.
