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10 Robotics Stocks Billionaires Are Loading Up On

In this article, we discuss 10 robotics stocks billionaires are loading up on. If you want to see more stocks in this selection, check out 5 Robotics Stocks Billionaires Are Loading Up On

The global robotics technology market experienced significant growth over the past few months, with its value increasing from $75.89 billion in 2022 to $88.8 billion in 2023, representing a compound annual growth rate (CAGR) of 17.0%. It is projected that the robotics technology market will expand to reach $155 billion by 2027, exhibiting a CAGR of 14.9%. In 2022, the Asia-Pacific region held the largest share in the robotics technology market. Furthermore, the Asia-Pacific region is predicted to exhibit the highest growth rate during the forecast period. 

The level of industrial automation has significantly grown in recent times, driven by factors such as enhanced productivity, cost reduction in labor, improved efficiency in production processes, and advancements in product quality. In the coming years, industries like food and beverages, automotive, and oil and gas are expected to embrace greater automation due to intense market competition and the need to stay ahead by improving product quality and production speed. Robotics has played a transformative role in automation processes, particularly with the increasing demand for robot arms in the market. This demand is anticipated to further rise throughout the forecast period spanning from 2022 to 2027.

ABB Robotics President, Marc Segura, has shared his insights and predictions regarding significant trends in robotics automation for the year 2023. He noted

“The impact of global labor shortages is increasingly being felt by many businesses while they try to keep pace with customer demands. This, coupled with global uncertainty, disrupted supply chains and rising energy costs as a result of world events in 2022, means more companies are looking to robotic automation as a way of increasing flexibility, building resilience and making their operations more sustainable.”

As per ABB, a robotics company based in Switzerland, the demand for robots is anticipated to be particularly high in countries where organizations plan to relocate or bring their operations closer to their home countries, aiming to enhance the resilience of their supply chains amidst global events. According to a survey conducted by ABB Robotics in 2022, which involved 1,610 companies from the United States and Europe, 75% of European respondents and 62% of U.S. respondents indicated plans to invest in robotic automation within the next three years. Marc Segura further explained: 

“As Artificial Intelligence in robotics develops, the concerns around complexity and capability that previously prevented companies from investing in robotic automation, are being addressed. As capabilities develop further, robots will appear in greater numbers and in applications outside of the traditional manufacturing and distribution environments such as electronics, healthcare, e-commerce, pharmaceuticals and food service.”

Billionaires are actively investing in stocks such as NVIDIA Corporation (NASDAQ:NVDA), Honeywell International Inc. (NASDAQ:HON), and Intuitive Surgical, Inc. (NASDAQ:ISRG) to capitalize on the thriving robotics industry. 

Our Methodology 

Insider Monkey tracks billionaire-owned stocks and in this article, we selected the robotics stocks that attracted the highest number of billionaire investors during the first quarter of 2023. We have also mentioned the overall hedge fund sentiment towards each stock as of Q1 2023. 

Robotics Stocks Billionaires Are Loading Up On

10. UiPath Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 36

Number of Billionaire Investors: 8

UiPath Inc. (NYSE:PATH) offers a comprehensive automation platform, catering to various robotic process automation (RPA) solutions. Their services are primarily available in the United States, Romania, and Japan. In Q1 2023, UiPath Inc. (NYSE:PATH) was part of 8 billionaire portfolios. Billionaire Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 2.9 million shares worth $50.8 million. Laffont raised his stake in UiPath Inc. (NYSE:PATH) by 69% in the first quarter of 2023. 

On May 24, UiPath Inc. (NYSE:PATH) reported a Q1 non-GAAP EPS of $0.11 and a revenue of $289.59 million, outperforming Wall Street estimates by $0.09 and $18.35 million, respectively. Cash, cash equivalents, and marketable securities were $1.8 billion as of April 30, 2023.

According to Insider Monkey’s first quarter database, 36 hedge funds were bullish on UiPath Inc. (NYSE:PATH), with collective stakes worth $1.58 billion, compared to the same number of funds in the prior quarter worth $1.15 billion. 

In addition to NVIDIA Corporation (NASDAQ:NVDA), Honeywell International Inc. (NASDAQ:HON), and Intuitive Surgical, Inc. (NASDAQ:ISRG), UiPath Inc. (NYSE:PATH) is one of the top robotics stocks that billionaires are loading up on.  

ClearBridge Investments shared its stance on UiPath Inc. (NYSE:PATH) in its Q3 2022 investor letter. Here’s what the firm said:

“Over the last three months, we similarly exited UiPath Inc. (NYSE:PATH) due to a change to our original thesis as we believe a new go-to-market strategy for its automation software could impact near-term execution. While we think process automation is a growing market, in a slowing macro environment single solutions may be more vulnerable than the platform solutions of software providers who can bundle products to meet a wide range of needs. In addition, the company has a material component of sales sourced in Europe where the economy is more vulnerable.”

9. iRobot Corporation (NASDAQ:IRBT)

Number of Hedge Fund Holders: 17

Number of Billionaire Investors: 8

iRobot Corporation (NASDAQ:IRBT) specializes in the design, construction, and sale of robots and innovative home products. The company’s offerings include floor care products, such as Roomba floor vacuuming robots. As of the first quarter of 2023, iRobot Corporation (NASDAQ:IRBT) is regarded as one of the preferred robotics stocks among billionaires. The stock was present in the investment portfolios of 8 billionaires.

Shares of iRobot Corporation (NASDAQ:IRBT) surged by 8% on June 1 following news that Amazon.com, Inc. (NASDAQ:AMZN) has obtained certification of substantial compliance with the Federal Trade Commission for its proposed $1.7 billion acquisition of the company. Additionally, both companies have submitted filings to Europe’s antitrust regulator.

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on iRobot Corporation (NASDAQ:IRBT), compared to 22 funds in the prior quarter. Billionaire Mario Gabelli’s GAMCO Investors is a significant position holder in the company. 

8. ABB Ltd (OTC:ABBNY)

Number of Hedge Fund Holders: 17

Number of Billionaire Investors: 9

ABB Ltd (OTC:ABBNY) is a company based in Switzerland that engages in the production and distribution of electrification, automation, robotics, and motion products. The company caters to customers in the utilities, industry, transport, and infrastructure sectors, both domestically and internationally. It is highly favored by billionaires as one of the top stocks in the robotics industry.

On April 25, ABB Ltd (OTC:ABBNY) reported a Q1 GAAP EPS of $0.56 and a revenue of $7.86 billion, up 12.8% year-over-year and beating market estimates by $280 million. For the second quarter of 2023, ABB Ltd (OTC:ABBNY) expects a significant increase in revenue, reaching double-digit growth when compared to the previous year. This growth is expected to contribute to an enhancement in the operational EBITA margin.

UBS raised the firm’s price target on ABB Ltd (OTC:ABBNY) to CHF 37 from CHF 36 and kept a Buy rating on the shares on April 27. 

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on ABB Ltd (OTC:ABBNY), compared to 16 funds in the prior quarter. Billionaire Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 373,774 shares worth $12.8 million.

Here is what Artisan Partners specifically said about ABB Ltd (OTC:ABBNY) in its Q2 2022 investor letter:

“ABB Ltd (NYSE:ABB) is a Swiss-based industrial conglomerate that manufactures electronic products and equipment. There is no new significant fundamental news on the company. We believe the share price decline relates to negative sentiment associated with industrial companies.”

7. Zebra Technologies Corporation (NASDAQ:ZBRA)

Number of Hedge Fund Holders: 26

Number of Billionaire Investors: 9

Zebra Technologies Corporation (NASDAQ:ZBRA) offers enterprise asset intelligence solutions in the global industry of automatic identification and data capture solutions. The company also provides solutions in the form of cloud-based software subscriptions and robotics automation. Among billionaires, Zebra Technologies Corporation (NASDAQ:ZBRA) ranks as one of the most sought-after stocks in the robotics industry.

On May 2, Zebra Technologies Corporation (NASDAQ:ZBRA) reported a Q1 non-GAAP EPS of $3.94 and a revenue of $1.41 billion, outperforming Wall Street estimates by $0.02 and $10 million, respectively. 

TD Cowen on May 11 reiterated its positive outlook on Zebra Technologies Corporation (NASDAQ:ZBRA) by maintaining an Outperform rating, although the firm has revised down its price target on the shares from $375 to $350. The firm noted that delays in retail and logistics projects have become the expected scenario, to the extent that their absence would be more surprising than their occurrence. While the landscape remains uncertain, TD Cowen anticipates Zebra Technologies Corporation (NASDAQ:ZBRA)’s growth to reach its lowest point next quarter and gradually improve towards an accelerated growth year in 2024.

According to Insider Monkey’s first quarter database, 26 hedge funds were bullish on Zebra Technologies Corporation (NASDAQ:ZBRA), with collective stakes worth $419.2 million. Billionaire Ray Dalio’s Bridgewater Associates initiated a position worth nearly $4 million in the company during the March quarter. 

Ariel Investment made the following comment about Zebra Technologies Corporation (NASDAQ:ZBRA) in its Q3 2022 investor letter:

“We also bought shares of two companies held in other Ariel portfolios, leading global manufacturer of power generation equipment Generac Holdings, Inc. (GNRC) and bar-code manufacturer Zebra Technologies Corporation (NASDAQ:ZBRA).

Meanwhile, ZBRA’s brand strength, distribution network and commitment to innovation enable it to take share, earn industry-leading profitability and penetrate new markets. A recent pullback in stock price provided an attractive entry point. Shares have come under pressure due to investor concerns around inflation and supply chain disruptions. At current valuation levels, we think investors are underappreciating ZBRA’s alignment with the global effort to improve supply chain efficiency. At the same time, the company is leveraging the wide moat in its core business to expand into faster growing markets including warehouse robotics and machine vision. Meanwhile ZBRA continues to deliver prodigious free cash flow which we believe will continue to be deployed towards both growth and share repurchases.”

6. Oceaneering International, Inc. (NYSE:OII)

Number of Hedge Fund Holders: 25

Number of Billionaire Investors: 10

Oceaneering International, Inc. (NYSE:OII) offers specialized services, products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries. As of the first quarter of 2023, Oceaneering International, Inc. (NYSE:OII) is considered one of the preferred robotics stocks among billionaires. The stock was included in the investment portfolios of 10 billionaires.

On March 2, J. David Anderson, an analyst at Barclays, increased the price target on Oceaneering International, Inc. (NYSE:OII) to $22 from $13 while maintaining an Equal Weight rating on the shares. According to the analyst, the positive outlook for the offshore sector was reinforced by strong earnings results that exceeded expectations across various companies.

According to Insider Monkey’s first quarter database, 25 hedge funds were bullish on Oceaneering International, Inc. (NYSE:OII), compared to 21 funds in the last quarter. Billionaire David Elliott Shaw’s D E Shaw is a prominent stakeholder of the company, with 832,797 shares worth $14.6 million. 

Oceaneering International, Inc. (NYSE:OII) is a popular robotics play among billionaires, much like NVIDIA Corporation (NASDAQ:NVDA), Honeywell International Inc. (NASDAQ:HON), and Intuitive Surgical, Inc. (NASDAQ:ISRG). 

Aristotle Small/Mid Cap Equity Strategy made the following comment about Oceaneering International, Inc. (NYSE:OII) in its Q4 2022 investor letter:

“Oceaneering International, Inc. (NYSE:OII), a global provider of engineered products, services and robotic solutions for a variety of end markets, benefited from improved operating performance and profitability across all its business units. We maintain a position, as we believe the company’s strong portfolio of technologically advanced products and services remains well‐ positioned to benefit from a recovery in its offshore activity. Additionally, we believe the company’s Mobile and Subsea Robotics may garner increased interest moving forward, as automation lowers on‐site personnel requirements and enables remote supervisory control.”

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Disclosure: None. 10 Robotics Stocks Billionaires Are Loading Up On is originally published on Insider Monkey.

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