5 Best Robotics and Automation Stocks to Invest In

2. Ambarella Inc. (NASDAQ:AMBA)

Ambarella Inc. (NASDAQ:AMBA) is one of the 10 best robotics and automation stocks to invest in.

On May 29, Rosenblatt increased the price target on Ambarella Inc. (NASDAQ:AMBA) from $115 to $120, while maintaining a Buy rating on the stock. The firm attributed this revision to the expanding use of AI models at the network edge, which is contributing to demand for Ambarella’s computer vision system-on-chip platforms.

Rosenblatt also highlighted the company’s long-term engagement with Hanwha Group, noting that it represents a pivotal shift from the system-on-chip designs being brought by higher-volume customers internally.

The increasing complexity of AI applications, combined with the need for greater flexibility, will prompt companies to increasingly utilize merchant system-on-chip designers such as Ambarella. Based on this outlook, Rosenblatt recommends the shares as an investment opportunity in the next phase of the Age of AI.

The same day, Christopher Rolland from Susquehanna also reaffirmed a Positive rating on the stock, while increasing the price target from $90 to $110. The revised target leads to an upside potential of more than 59%.

Rolland revised his model after the company reported quarterly results and guidance in line with the broader consensus. He attributed this to softness in the Consumer IoT segment, which was able to offset underlying strength within the Auto space.

Ambarella Inc. (NASDAQ:AMBA) builds semiconductors, SOCs, and software to facilitate physical and edge AI, as well as automation functions. The company has an array of offerings that include AI neural processors, CV flow SoCs, high-definition radars, system-on-a-chip semiconductors, and serializers. Its solutions address autonomous driving, IoT security cameras, video conferencing, automotive driver assistance, access control, and virtual reality applications worldwide.