Editor’s note: “AI Is Unlocking Major Wealth Potential for Robotics Stocks” was previously published in December 2023. It has since been updated to include the most relevant information available.
It likely comes as no surprise that I’m exceptionally bullish on artificial intelligence (AI) right now. In fact, for the past year, I’ve been pounding the table on robotics stocks as some of the best AI stocks to buy.
In particular, I’ve been very bullish on AI robotics startup Symbotic (SYM) as the top AI stock to buy right now.
Symbotic has developed an AI-powered robotic solution to entirely automate warehouse operations. Think massive Walmart (WMT) and Target (TGT) warehouses. Symbotic’s robotics automate everything inside of those facilities.
In fact, the company has already won a nationwide contract to automate all of Walmart’s distribution centers. And its order backlog just keeps growing.
That’s why SYM stock ended 2023 up nearly 330% while the S&P 500 was up ‘just’ 24%.
Investors who had been heeding our advice on SYM stock have increased their money by more than four-fold on that investment in 2023.
How’d we see it coming?
One word: productivity.
At its core, all the buzz surrounding AI these days boils down to productivity. Forget everything else. All the hype is about productivity gains.
AI promises to increase economic productivity by leaps and bounds, allowing humans to do more with less – which, for companies, means bigger profits margins and bigger profits.
As go profits, so go stocks. That’s why AI stocks are soaring right now. Everyone sees AI dramatically increasing corporate profits.
But the biggest productivity gains will come when artificial intelligences merges with robotics.
AI is just software. It’s a piece of code – or, more specifically, machine learning algorithms coded in the cloud or on a computer. It has no physical component.
That means by itself, AI simply cannot automate most tasks.
Enter robotics.
Transforming the Labor Market With Robotics
According to the U.S. Bureau of Labor Statistics, the most common job in America is the role of a retail salesperson. A little under 4 million people in the U.S. hold that job.
The second most common are home health and personal care aides. Cashiers hold the third most common role. Fourth most common? Fast food workers. And registered nurses round out in fifth.
As of May 2021, those five popular occupations accounted for nearly 20 million jobs in America.
Four of those top five jobs require physicality.
A retail salesperson is often expected to stock shelves and organize stores. Home health aides and registered nurses need to administer medicines and provide physical assistance. Fast food workers need to prep and deliver food.
Sure, cashiers aren’t necessarily required to do much physical labor – but they’re already being automated without AI. Of course, self-checkout registers have been a growing phenomenon for years now.
In other words, the bulk of AI-powered productivity advancements will only be unlocked when AI merges with robotics.
And that’s happening right now.
The AI Robotics Revolution
Chipotle (CMG), White Castle, Panera, and Chili’s are all using robots in their restaurants to make and deliver food, even clean tables and floors.
Sam’s Club and BJ’s Wholesale (BJ) are using autonomous inventory robots to verify price signs and look for out-of-stock items.
And, yes, Walmart is automating all of its warehouses and distribution centers in America with Symbotic’s technology. In fact, the retail giant just opened a 1.2 million square-foot automated distribution center in Texas, all powered by Symbotic tech.
That’s how we saw the enormous SYM stock rally coming.
We knew the AI Revolution was all about productivity gains. We knew that the biggest productivity gains in this revolution were going to happen with the merging of AI and robotics. And we knew that Symbotic had the best proprietary tech in the overlap of AI and robotics.
The AI Robotics Revolution has arrived.
And it’s not going to slow down anytime soon.
According to Allied Market Research, the global robotics market is expected to grow by nearly 30% per year into 2030!
We’re standing at the foot of a Mt. Everest-sized opportunity in AI robotics.
The Final Word
But SYM is far from the only top AI stock to buy today.
Over the past few weeks, it has become increasingly clear that the U.S. economy will likely achieve a soft landing in 2024. That environment is one where the Fed lowers interest rates while economic growth stays positive.
And that’s a rare combination. The economy has only achieved a soft landing four other times over the past 50 years. Each time it did, stocks soared.
We believe it will happen for the fifth time in 2024 – and catapult stocks higher.
And while AI stocks have been hot in 2023, they’ll get even hotter in ‘24.
The data suggests that a ‘meltup’ is on the way. Are you prepared for it?
If not, find out our top AI stock picks for 2024 now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
