Robotics stocks draw a crowd as chip names lose their shine
Bespoke Investment Group says robotics is gaining investor attention as AI valuation worries hit semiconductor stocks.
By Sal Moretti · Money Reporter
3 min read
Robotics is getting a fresh turn in the market spotlight while semiconductor stocks wobble under renewed worries about the price tag on the artificial-intelligence boom.
MarketWatch reported that early Friday futures trading pointed to another rough session for stocks, with the chip sector leading the slide. Defensive areas such as consumer staples and healthcare have been drawing more interest, while bank shares have found support from stronger earnings.
Bespoke Investment Group says investors looking for an AI-adjacent theme should pay closer attention to robotics. In a Thursday note cited by MarketWatch, the research firm said Google searches tied to robotics and related components have climbed sharply over the past year, with the rise picking up in recent months.
The renewed buzz comes alongside higher-profile robotics headlines, including Tesla’s work on its Optimus humanoid robot and the debut of household robots such as 1x’s NEO, according to MarketWatch.
Why Bespoke is watching robots
Bespoke said the robotics story goes beyond flashy humanoid machines. The firm pointed to AI-related advances and noted that Japanese machine orders for industrial robots have risen 24.5% over the past year, calling that one of the fastest gains on record.
Corporate dealmaking is also feeding the theme. Hyundai Motor said this week it would buy SoftBank’s stake in Boston Dynamics, the U.S. robotics company known for videos of robot dogs, according to MarketWatch.
Bespoke divided the robotics trade into two groups: companies with robotics or automation products, and “picks-and-shovels” suppliers that make key parts, chips, systems or controls. To make the firm’s baskets, companies needed market values above $1 billion and liquid U.S. listings.
The firm said both equal-weighted baskets have performed well over the past year, although its robotics and automation company group has retreated this year. Bespoke also said its baskets leave out many robotics-linked companies traded in China, South Korea and Japan.
The names in focus
Among the largest companies in Bespoke’s robotics and automation basket by market value are several familiar giants, each tied to a different slice of the robot economy:
- Alphabet, cited for Waymo robotaxis and robotics AI research.
- Amazon, cited for operating more than 1 million warehouse robots.
- Tesla, cited for development of its Optimus humanoid robot.
- ABB, cited as a global industrial robotics and automation maker.
- Deere, cited for autonomous tractors and farm equipment.
- Intuitive Surgical, Stryker and Medtronic, cited for robotic surgical systems.
- Honeywell, cited for warehouse automation and robotics systems.
- Teradyne, cited for Universal Robots cobots and MiR mobile robots.
Bespoke’s picks-and-shovels basket includes chip and automation suppliers whose products help robots compute, sense, move or operate. The top names by market value include Nvidia, AMD, Texas Instruments, Siemens, Qualcomm, Analog Devices, Schneider Electric, Parker-Hannifin, Infineon and Emerson Electric.
The broader market backdrop remained tense Friday morning. MarketWatch reported that S&P 500, Dow and Nasdaq futures were lower, Treasury yields were falling, the dollar index was little changed, oil futures were rising and gold futures traded near $4,002 an ounce.
The Nasdaq Composite was down 1.24% over five days and 2.40% over one month, according to MarketWatch data, though it remained up 11.36% for the year and 23.92% over 12 months.
This story draws on original reporting from MarketWatch.