Robotics is Moving from Science Fiction to Reality. Here are Two Stocks that Could Benefit as Automation Transforms the Global Economy
The robot revolution is here and is quickly becoming a reality. Innovations are occurring at a record pace. Using artificial intelligence (AI), robots can perform many essential tasks for businesses and consumers. Robot stocks offer the chance to participate in these changes.
Demand for robots is increasing, with a 63.7% annual growth rate projected by 2040. This is an exciting opportunity for long-term investors. You can take advantage of this by owning two up-and-coming robot stocks.
The Top Two Robot Stocks to Buy
Robotics stocks cover many different industries. The two stocks we are focusing on are in different sub-industries. These automation stocks let you participate in the broader growth of AI robotics.
Symbotic (NASDAQ: SYM): AI Robotics Meets the Warehouse
SYM is an established player in warehouse robotics. The company focuses on developing automation technology. This helps retailers effectively store, retrieve, organize, and move products quickly.
The technology uses AI, robotics, software, and automation systems to run various robots. These robots are more productive and can work 24 hours a day moving inventory. This ensures that retailers always have the inventory their customers need in real time.
The company has several different robots and services it offers, including.
- SymBots: These are robots that move at high speeds across retail stores and warehouses to locations with in-demand products.
- Dense Storage Robots: These robots work in warehouses to locate and store merchandise 60% faster.
- Native Case Handling Robots: These robots can handle the original product packaging with no additional trays.
- High Throughput: High Throughput robots improve inventory and supply chain management by 9 times, with 99.99% accuracy.
The company focuses on improving management and efficiency across the supply chain. For retailers, this reduces costs and helps them understand and address issues faster. One of its biggest contracts is with Walmart, which is driving 29% annual earnings growth. It is one of the top robot stocks to own
Serve Robotics (NASDAQ: SERV): The Future of Food Deliveries
SERV focuses on delivery robots for food, prescriptions, and retail products. The company makes small robots that move along sidewalks over short distances. Retailers, pharmacies, and restaurants use these solutions to lower costs and improve delivery services. SERV’s biggest clients include Grubhub, DoorDash, 7-Eleven, and White Castle.
The company is expanding into healthcare robotics by purchasing Diligent Robotics. Diligent Robotics delivers AI robot assistants to the healthcare industry. The Maxi Hospital Assistant is transforming healthcare. It transports medications and lab samples, collects supplies, opens doors, pushes elevator buttons, and can lift light medical supplies. Some of its largest healthcare clients include Cedars-Sinai Medical Center, Northwestern Medicine, and Houston Methodist Hospital.
Diversifying into other industries creates more growth opportunities and reduces risk. The company is less exposed to sudden industry changes and a single client. Instead, it operates in different industries and has a strong customer base, with 16.2% earnings growth next year.
The Bottom Line
These robot stocks let you take advantage of the robot revolution. They offer ground-floor opportunities in AI robotics through warehouse automation and autonomous deliveries. In the future, more companies are relying on these solutions to reduce wait times and improve efficiency.
Adding them to your portfolio gives you the chance to be a part of these transformations over the long term. However, in the short term, volatility could be high as the industry continues to grow. That is why we urge you to wait for a pullback before buying these stocks, rather than chasing them. This will lower your risk and ensure you buy when the volatility may be declining.