Palladyne AI Corp. (NASDAQ:PDYN) is one of the best pure-play robotics stocks to buy now.
Palladyne AI Corp. (NASDAQ:PDYN) is among the best pure-play robotics stocks to buy now. Since late 2023, the company has pivoted to developing AI software for use in robotic systems, after its earlier history as a robotics hardware manufacturer. It is now a developer of AI software (termed as “Embodied AI” by the company) for robotic platforms in the industrial and defense sectors, with over 30 years of experience in robotics and robotics software & engineering.
While the company is early in building up its order book, Alliance Global analyst Brian Kinstlinger appeared quite upbeat about its outlook as he raised his price target to $14 from $11 and maintained a Buy rating in a report on March 5, the day the company reported its Q4 2025 and FY 2025 results. The analyst noted the company’s signing of its first commercial IQ customer contract and the momentum in bookings as important developments in the Q4 results. For context, Palladyne IQ is the company’s autonomy software for industrial robots and collaborative robots (cobots).
As the company reported progress in integrating its SwarmOS defense platform with Red Cat’s drones, Kinstlinger believes a government contract win could be a game-changer for Palladyne AI.
Later, in a March 10 report, Jefferies analyst Greg Konrad raised his price target to $8 from $7 but maintained a Hold rating on Palladyne AI Corp. (NASDAQ:PDYN). While the analyst appreciated progress in the company’s AI offerings, the stock still appears to be a ‘show-me’ story for him.
Meanwhile, the company has guided for 2026 revenue of $24 million to $27 million, up substantially from $5.2 million in 2025, indicating its strong operational momentum. It also reported a 12 to 18-month backlog of nearly $18.0 million. On its 2026 outlook, Benjamin Wolff, President and Chief Executive Officer, said:
“We moved from being primarily a development-stage AI company to a vertically integrated embodied AI-centric industrial and defense platform company generating meaningful revenues. In short, we exited 2025 fundamentally different. 2026 will be the first full year of operations as a vertically integrated embodied AI-centric industrial and defense company.”
Palladyne AI Corp. (NASDAQ:PDYN) develops patented, embodied-AI, collaborative-autonomy solutions, advanced avionics, autonomous systems, aerospace engineering services, and precision-manufactured components for defense and industrial markets.
While we acknowledge the risk and potential of PDYN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PDYN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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