Today, robots are most likely supporting humans. They are also toiling in risky, boring conditions, in addition to hurried yet precise work on assembly lines, much to our relief and safety. The large applications of robotics have won robots enormous demand across industry verticals, from small surgeon robotic assistants to supply distribution to recycling.
In the military, space exploration, underwater exploration, farming crops, repairing oil spills, and also combating crimes, robots are also being used. Therefore, it is no wonder that the S&P 500 has been beaten by robot inventories over the past decade.
Robots are currently poised to drive their industry to new heights. Via news apps, applications, and the development of connected technologies. Robotics inventories come from industries engaged in the design or development of robots.
Last year, in terms of innovation, raising money, or bringing timely applications that have made them significant shortly, many robotic companies made great strides. A study published by PR Newswire revealed that by 2025, the robotics industry will be worth US$73 billion, and the current pandemic has only reduced initial growth forecasts by 3%.
Meanwhile, the interest of business leaders in embracing digital transformation has increased. This growth in digital uptake would fuel the forward momentum of the robotics industry, influencing its contribution to companies in the coming years. NASDAQ claims that it can be viewed as an exciting investment trend, even though the robotics industry expands by 15 percent to 20 percent over the next five years.
ABB is currently one of the leading stock robotics providing computer and factory automation facilities. Due to its graphics processing unit (GPU) technology that makes AI in self-driving vehicles, gaming, the cloud, Big Data, and many other fields, NVIDIA Corporation is also another big name in the robotics stock industry.
As countries such as the USA, China, Germany, Japan, and others continue to rise to prominence in a world-leading ecosystem of start-ups and technology, investment in the robotics field has also started to flow. Since the robotics trend is still in its infancy, buying the right stocks could result in huge returns for investors this early in the game. Such motivating ones include:
iRobot is a company of consumer robotics that designs and develops robots. In terms of routing, navigation, accessibility, and artificial intelligence, the iRobot portfolio includes ideas. It provides vacuuming robots for the Roomba floor; automatic floor mopping robots for the Braava family; Terra robotic lawn mower products; and Root robots designed to help children learn how to code.
With its US$285 million purchase of Universal Robots, semiconductor producer Teradyne made headlines a few years ago. In the second half of 2020, the company also saw a positive market revival. Energid Technology and MiR are other strategic acquisitions. Teradyne is working in Denmark to create “the largest collaborative robotics hub in the world.”
It is important to remember that while robotics stocks have a bright future and are easy to invest in, they are not risk-free. For example, when you lose to a younger, flashier rival, buying stock in individual companies entails higher risk. At the same time, considering market rivalry, the money and resources of better-established firms could be lacking for newly hatched startups. Besides, for large-cap players, robotics only represents a small piece of the overall income. This year, companies such as Tesla, Alphabet Inc, etc. will see strong growth, given their exciting inventions. So, whether you invest in a large multinational company or the IPO of a small startup, research is important before purchasing. It is therefore important for investors to pay careful attention to press releases and potential annual reports.
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