What are the best robotics and artificial intelligence stocks to buy today? In this time of uncertainty characterized by volatile market movements, economic contraction, and spiraling unemployment, finding stocks to put your money into seems like an arduous task. Some investors might think that the stock market is acting irrationally and puzzled by the quick recovery of stock prices sin the end of March. The market’s movements isn’t far away from economic realities. Economic reality is that long-term real interest rates are negative, the Federal Reserve is flooding the market with cheap credit, and the current economic slowdown is temporary.
This is the perfect environment to buy technology stocks which aren’t negatively affected by the coronavirus induced lockdowns and economic slowdown. In this article we are going to take a look at the top 5 robotics and artificial intelligence stocks to buy. We are on the cusp of a technological revolution that will fundamentally change how we live our lives. Recent advancements in machine learning and artificial intelligence will open the door to robots, driving cars, and many other inventions that we can’t even imagine today. So, we decided to take a look at the best robotics and AI stocks to buy in order to generate high returns as the companies bring new products in to the marketplace.
In order to compile this list of best robotics and AI stocks to buy we started with top 15 stocks in the Global X Robotics & Artificial Intelligence ETF (BOTZ). According to its website this ETF “seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles”.
Savvy investors have used hedge funds as a litmus test to gauge the profitability of stocks and to know the trajectory of market sentiment. Research carried out by Insider Monkey has shown that a select group of hedge fund holdings have consistently outperformed the S&P 500 ETFs by more than 56 percentage points since March 2017 (see the details here). As such, hedge fund sentiments are undoubtedly a useful indicator that experienced investors should pay attention to.
Based on hedge funds sentiment, we present 5 most popular robotics and AI stocks among the 800+ hedge funds tracked by Insider Monkey.
5. John Bean Technologies Corporation (NYSE: JBT)
John Bean Technologies Corporation (NYSE: JBT) provides technology solutions to the food and beverage industry, including equipment and services to air transportation industries. The company has a market capitalization of $2.995bn. This stock has underperformed by -18.4%. In 2020, Q1 John Bean Technologies Corporation (NYSE: JBT) released quarterly earnings of $1.09 per share. This compares to earnings of $1.42 per share a year ago
The company is poised to gain from focus on developing innovative products and services and expanding the aftermarket business on the effects of the pandemic are over. The management also aims to continue its ‘Elevate Plan’ aiming to drive persistent growth and margin expansion and strategic acquisition programs. Growing demand for protein, beverages and ready-to-eat meals are likely to act as key catalysts in the long haul.
John Bean Technologies Corporation (NYSE: JBT) is in the portfolio of 12 hedge funds. Royce Associates has the biggest position in JBT in our database. Adage Capital and Citadel are also invested in this stock but they have been trimming their holdings more recently.
4. Brooks Automation, Inc. (NASDAQ: BRKS)
Brooks Automation, Inc. (NASDAQ: BRKS) provides automation and cryogenic solutions worldwide. The company operates in two segments, Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The company has a market capitalization of $3.49bn. This year, the company’s share price has increased by 10.84%. In 2020,
Brooks Automation is in the portfolio of 18 hedge funds. Billionaire Ken Fisher, Chuck Royce, and Paul Marshall And Ian Wace are among the top hedge fund backers of BRKS.
3. iRobot Corporation (NASDAQ: IRBT)
iRobot Corporation (NASDAQ: IRBT) Robot Corporation designs, builds and sells robots for the consumer market in the United States, Europe, the Middle East, Africa, and internationally. The company has a market capitalization of $2.052bn, while its share price has increased by 51.3% this year. iRobot Corporation (NASDAQ: IRBT) maintained its earnings streak in the second quarter of 2020, reporting earnings of $1.06 per share. Healthy sales growth and improved margins aided the year-over-year rise of 120.8%, as revenues of $279.9 million were reported for the quarter.
It is no surprise that the company is in the portfolio of 19 hedge funds. Quant hedge fund Two Sigma has the biggest equity position in IRBT in our database.
2. Intuitive Surgical, Inc. (NASDAQ: ISRG)
Intuitive Surgical, Inc. (NASDAQ: ISRG), together with its subsidiaries, designs, manufactures and markets da Vinci surgical systems and related instruments in the United States and internationally. The company has a market capitalization of $80.443B. This yeas alone, shares of Intuitive Surgical, Inc. (NASDAQ: ISRG) have increased by 15%.
Though the company reported adjusted earnings per share (EPS) of $1.11, for 2020 Q2, earnings plunged 65.8% year over year. The company’s reported revenues also declined by 22.5% totalling $852.1 million. Adjusted operating income, which totaled $193.3.3 million, was down by 57.5% year over year.
Fifty hedge funds had bullish positions in Intuitive Surgical, Inc. (NASDAQ: ISRG) at the end of the first quarter. The largest stake in Intuitive Surgical, Inc. (NASDAQ: ISRG) is held by Fisher Asset Management, which reported holding $350.1 million worth of stock at the end of September. It was followed by GQG Partners with a $137.2 million position. Other investors bullish on the company included Citadel Investment Group, Adage Capital Management, and OrbiMed Advisors. In terms of the portfolio weights assigned to each position, Unio Capital allocated the biggest weight to Intuitive Surgical, Inc. (NASDAQ: ISRG), around 3.45% of its 13F portfolio. Rock Springs Capital Management is also relatively bullish on the stock, designating 3.12 percent of its 13F equity portfolio to ISRG.
1. NVIDIA Corporation (NASDAQ: NVDA)
NVIDIA Corporation (NASDAQ: NVDA) operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The company has a market capitalization of $261.104bn. NVIDIA (NASDAQ: NVDA) has been one of the best performers in the U.S. stock market for the last few years. This year alone, shares of the company have increased by 77%, 150% in the last 12 months, against its industry’s 45% climb. The stock, which was around $20 at the beginning of 2015, currently trades at $424.56 (July 30), representing a more than twenty-fold jump. The company recently surpassed Intel (NASDAQ: INTC) to become the largest U.S. semiconductor maker.
Based on this performance, it is no surprise that the stock is in the portfolio of 95 hedge funds. Fisher Asset Management and GQG Partners held the largest equity positions in NVDA in our database at the end of March.
Disclosure: None. This article is originally published at Insider Monkey.