NVIDIA is all of the rage in the robotics and automation market; and we would probably say all of the rage of the investible universe as well. And why shouldn't it be. Check out this price action:
In fact, NVDA is one of the main drivers of the S&P 500 returns over the past 3 years. Even so far this year, NVDA has been a real winner:
However, NVDA is not the only AI stock that you might want to have on your radar. Especially considering many of the below are not in the major indexes or ETFs:
SoundHound AI (SOUN), is the maker of advanced AI voice recognition systems which are used by the food and beverage, defense, automotive and many other sectors. Shares of SoundHound rose 346.99% in February after an announcement that Nvidia would be investing in the company.
Recursion Pharmaceuticals (RXRX), combines artificial intelligence with automation to conduct experimental biology for testing compounds of cellular disease models in parallel. Although Q4 sales were somewhat disappointing shares of Recursion rose 23.26% in the month after Nvidia disclosed a stake in the company.
FiscalNote (NOTE), provides AI driven data gathering solutions for legislation analysis, visualization, and information processing regarding the assessment of government risks. Shares of the company rose 18.55% during the month an although the stock has been flat for many months it is expected that there will be a lot of activity in this stock as elections approach.
Some other ideas that might be helpful within the Robotics and Automation sector:
Aerospace:
Intuitive Machines (LUNR), the maker of the Odysseus robotics moon lander saw shares climb 59.52% as the lander landed on the moon and sent data back to earth. It was the first landing by the United States in 50 years. With contracts from SpaceX and Nasa along with plans for Mars continue Revenues are projected to go from $71.9M in 2023 to $483.7M by the end of 2025.
Industrial Robotics and Automation:
Regal Rexnord (RRX), is an industrial automation company who designs, manufactures, and sells electric motors and controls. Although an industrial recession persists shares of the company were up 28.5% for February as confidence in acceleration of industrials is expected in the second half of 2024.
Nano Dimension NNDM), is a 3D printing company. The Company focuses on the research and development of 3D printed electronics that includes a printer for multilayer printed circuit boards, and the development of nanotechnology based inks. Nano Dimension also supplies its nano inks to other fields in the electronics market. Shares of Nano Dimensions were up 18.75 % for the month after the company announced a $200 share buyback.
Unmanned Vehicles:
Kraken Robotics (PNG CN), engages in designing, development, and marketing of software, advanced sonar and optical sensors, and unmanned underwater robotic systems used in military and commercial applications. Shares were up 27.2% in February (52.56 YTD) after announcing orders from NATO and the Royal Danish Navy.
As you can see, robotics and automation continue to provide opportunities for outsized returns. There are more names than just one that should be on your radar.
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