Humans have enjoyed the fruits of automation for a long time, at least since the Industrial Revolution in the late 18th century. We are now entering a more complex age that relies on both smarter machines and the management of data, making it an opportune time to consider robotics stocks to buy now.
On one hand, a machine is nothing without sense data, just as humans are crippled in their actions without eyesight. On the other hand, even if that sense data is there, it has to be effectively coordinated into a holistic system.
Underlying such a system is the Internet of Things (IoT). Its industrial component alone is poised for a 17.2% CAGR by 2032, while consumer IoT is set for a 12.7% CAGR by 2030. These companies are tightening the intersection between enhanced connectivity and robotics platforms.
Arbe Robotics (ARBE)
For investors betting on the autonomous driving future, Arbe Robotics (NASDAQ:ARBE) should be considered as one of the key robotics stocks to buy now. Based in Israel, the company provides the necessary sense hardware for full self-driving (FSD) to be feasible.
This includes 4D imaging radar solutions with ultra-high resolution and 360-degree coverage as well as Phoenix imaging radar to rapidly detect hundreds of objects up to 300 meters away. These solutions are steadily being adopted in the trucking industry to pave the road for level 4 autonomous driving.
Most recently on July 1st, the company announced that one of the top 10 OEMs (original equipment manufacturers) selected Arbe’s chipset for 4D radar imaging. So far, the company expanded its reach to China, Germany and the United States.
According to Fortune Business Insights as of the June report, the radar sensor market size is heading for a CAGR of 17.8% by 2032. At the moment, ARBE trades for $2.34 per share. That is above the 52-week average of $2.09 but ARBE shares are still far below its all-time high of $14.79 in November 2021. In the last three months, ARBE stock is up 25%.
Intuitive Surgical (ISRG)
Although there are nearly a dozen robotics surgery companies, such as Medtronic (NYSE:MDT), Stryker (NYSE:SYK) and Asensus (NYSEMKT:ASXC), it appears that Intuitive Surgical (NASDAQ:ISRG) offers the most widely adopted platform with its da Vinci system. With a long track record of successful surgeries since 2000, the company is simply ahead of the game.
Considering all the factors that could go wrong in such delicate matters, ISRG stock has received the most traction. Intuitive’s latest da Vinci 5 iteration makes for a fully integrated robotics surgery platform ready for mass deployment. The company improved the Force Feedback feature for a better sense of pull and push forces by the operator.
Combined with improved ergonomics and high-resolution 3D imaging, da Vinci 5 boasts over 150 design innovations. Of course, this also includes future-proofing by giving it enough computing power to harness AI advances.
In the Q1 earnings call, the Californian company delivered $545 million net income compared to $355 million in the year-ago quarter. With an operating margin of 33.3%, this makes Intuitive Surgical a high-margin business.
Presently priced at $438.01, ISRG stock is near its 52-week high of $449. Yet, just as is the case with Nvidia (NASDAQ:NVDA), this may just be the beginning of Intuitive Surgical’s continued rise and dominance, making it one of the top robotics stocks to buy now.
Samsara (IOT)
While flashy humanoid robots catch the public’s attention, automation at scale relies on data coordination between various sectors. This is the mission of Samsara (NYSE:IOT). The stock’s ticker symbol is also the acronym for the Internet of Things (IoT), hinting at the company’s goal to integrate data from multiple platforms into a unified platform experience.
The California firm supplies many industries with solutions for AI cameras, real-time GPS, continuous diagnostics, electrification, real-time tracking of trailers, remote visibility and training for its host of devices.
In other words, the rollout of physical robots will likely involve Samsara’s coordination services in logistics and transportation. For fiscal Q1 2025, the company generated $280.7 million in revenue, 37% more than the year-ago quarter, while netting $23.7 million cash from operations. The company holds an accumulated deficit of $1.5 billion and total liabilities of $825.5 million.
Nonetheless, Samsara’s price-to-book (PB) ratio of 22.81 suggests that investors are highly optimistic about IoT growth. After all, it has been a constant theme at the World Economic Forum.
Currently priced at $38.26, IOT stock is nearly double the 52-week low of $21.48 per share. The stock has gained 17% in value year-to-date. Nasdaq forecasts an average price target of $41.1 for IOT shares. A less optimistic target estimates the value at $36, aligning with the current price. Samsara’s robust growth and strategic position in IoT and automation make it a compelling buy. It stands out as a top choice among robotics stocks to buy now.
On the date of publication, Shane Neagle did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
