Investment potential looks promising as robotics companies incorporate AI into their products
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Combination of artificial intelligence (A.I.) and robotics may conjure up images of science fiction, but the two technologies intertwine to maximize the potential of the tech industry. As automation expands across industries from agriculture to defense, the combination of AI and robotics could create a $36.78 billion market by 2030. Therefore, companies pursuing this venture are classified as AI robot stocks as they contribute to the integration of technology.
For investors, two factors will determine whether these experimental applications of AI represent a successful investment opportunity. First, does the company currently serve a customer base that requires integrated AI robotics? Second, how much value does the company’s offering deliver to shareholders, customers, and the market as a whole? Is it?
These two questions allow investors to more accurately predict a company’s commercial success or research obscurity. So here are his three stocks that are currently pioneering new combinations of AI and robotics in their respective sectors.
Textron Co., Ltd. (TXT)
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While much of the buzz around AI robotics comes from the commercial industry, investors should keep defense contractors in mind. One of these notable companies is Textron Co., Ltd. (New York Stock Exchange:TXT), has a project with high potential in combat robotics. Several previous bids to the U.S. military have been successful, and Textron’s various subsidiaries have won long-term contracts here and there.
Textron’s AI robotics project is now in full swing as the M5 Ripsaw platform has been selected for testing by the U.S. military. The robotic platform resembles a self-driving tank and will compete with other defense contractors in the Army’s robotic combat vehicle program. If Textron acquires the program, its value could continue to increase.
Additionally, Textron’s strong financial position and current P/E ratio of approximately 20.60x suggest that the company may be somewhat undervalued among defense contractor stocks. Therefore, I believe that Textron is one of the most powerful AI robot stocks to buy right now.
UiPath
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From humble beginnings in Romania to today’s over 10,800 customers. UiPath (New York Stock Exchange:path) represents a growing AI company. The company primarily focuses on robotic process automation software that monitors user activities and automates repetitive tasks. Therefore, UiPath provides efficient cost-saving services to its customers.
For the past 20 years, UiPath has focused on growth. So, it was struggling to make a profit, but things seem to be changing. As of the fourth quarter earnings report of 2023, the company finally achieved its GAAP first quarter profitability. Additionally, UiPath’s customers continued to increase their spending over the last year, which means they think the service is effective.
For investors, UiPath’s current share price decline and overall potential make it a solid buy with good long-term potential at the moment. If a company is consistently profitable, its value will likely continue to grow.
Dear & Company (DE)
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Many people may not think that tractors and combines are at the forefront of AI and robots, but Dear & Company (New York Stock Exchange:D.E.) aims to change that. New projects on autonomous tractors and machine learning are underway, and the company hopes to build a world of robotic tillers by 2030.
Additionally, the company’s P/E ratio is currently 11.4x, suggesting that the stock still has room for growth. Deere & Company’s approach to tractor maintenance is controversial among farmers, but it’s clear that the company prioritizes profitability above all else.
We also note that Deere & Company has a steady revenue growth of 16.47% year-over-year. In my opinion, most retail investors have very little exposure to farm equipment, but DE could become famous someday.how tesla (NASDAQ:TSLA) is revolutionizing personal electric vehicles, while Deere & Company could revolutionize agricultural automation.
On the date of publication, Viktor Zarev did not have any positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
