Robotics and automation have become increasingly important areas of investment as manufacturers, logistics operators, and businesses turn to intelligent systems to improve productivity. Yet the expansion of the industry has not translated into consistent stock-market gains for every company involved. Several prominent robotics and automation stocks have fallen more than 30% from their 52-week highs, raising questions about the gap between the industry’s long-term potential and the financial performance of individual businesses. Access our meticulously compiled list of the 10 Most Profitable Stocks of the Past 5 Years to see which companies are generating the most profits.
However, it is significant for investors to note that the underlying demand for automation is continuing to expand. According to the International Federation of Robotics, factories worldwide installed more than 600,000 industrial robots in 2025, an increase of 11% from the previous year. The global operational stock reached approximately five million robots, while the United States overtook Japan to become the world’s second-largest market for industrial robot installations. You can also take a look at the 10 Best Autonomous Vehicle Stocks To Buy Backed by Hedge Funds to see hedge funds’ favorite robotics stocks. Autonomous vehicles are a specific kind of robots that are on wheels after all.
Artificial intelligence is also extending automation beyond conventional manufacturing applications. Autonomous warehouse systems, surgical robotics, intelligent sensors and unmanned defense platforms represent different approaches to applying robotics technology commercially. However, the economics of these businesses vary considerably. Some companies already generate substantial revenue and positive cash flow, while others remain dependent on product commercialization, external financing, or the conversion of contracts into sustainable earnings. Check out our list of 10 Fastest-Growing AI Stocks to Buy Now.
For investors, a large decline from a stock’s 52-week high does not necessarily indicate undervaluation, but it makes the company’s underlying financial performance, competitive position, and ability to execute on its growth plans particularly important. With that, let’s look at the best robotics and automation stocks to buy that are on sale.
Our Methodology
To compile our list, we reviewed holdings of robotics and automation-focused ETFs and conducted additional research to identify US-listed companies operating in the industry. Our definition includes industrial robotics, software automation, autonomous systems, and enabling technologies such as motion control, sensing, and machine vision.
We then selected stocks trading more than 30% below their respective 52-week highs as of October 30, 2026, using Yahoo Finance closing-price and 52-week-high data. The qualifying companies were then ranked in ascending order according to the number of hedge funds holding stakes in them, based on Insider Monkey’s hedge fund ownership data as of Q2 2026.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10 Best Robotics and Automation Stocks To Buy That Are On Sale
10. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Decline From 52-Week High: 75.35%
Number of Hedge Fund Holders: 20
Red Cat Holdings, Inc. (NASDAQ:RCAT) has been expanding its position in autonomous defense technology through its unmanned aircraft systems and related robotic platforms. Its Black Widow drone has been an important part of that effort, particularly as the company works to establish a larger presence in US military procurement.
The company secured a $9.5 million US Army purchase order in May 2026 and subsequently received a $2.49 million US Air Force contract for Black Widow systems and related support. These awards demonstrate progress in attracting government customers, although the Air Force contract covers an operational assessment rather than a commitment to broader deployment.
Red Cat’s commercial progress has also been accompanied by significant financial challenges. Second-quarter revenue reached $20.2 million, reflecting growth of a whopping 527% compared to the prior year period. However, its GAAP gross margin was just 16.1%, up 39% year-over-year, while the company reported a net loss of $35.3 million.
For investors, the issue is whether growing defense orders can translate into more profitable production at scale. Red Cat’s steep share-price decline reflects the importance of evaluating its commercial achievements alongside its still-developing earnings profile. For more insight into the AI sector, read our comparative article on Microsoft vs. Amazon: Is AMZN’s AI Growth Being Undervalued by Investors?
9. Ondas Inc. (NASDAQ:ONDS)
Decline From 52-Week High: 58.64%
Number of Hedge Fund Holders: 22
Ondas Inc. (NASDAQ:ONDS) has increasingly positioned itself around autonomous defense and security systems, expanding its operations through acquisitions and a growing portfolio of aerial and ground-based technologies. The company’s investment case rests partly on the breadth of this portfolio, although that expansion also makes its financial performance more complicated to assess.
In October, Ondas announced more than $165 million in additional orders, bringing total orders secured since June 30 to more than $270 million. This followed a second quarter in which revenue reached $83.8 million, compared with $6.3 million a year earlier.
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However, the reported increase needs to be considered alongside the company’s acquisition activity. On a pro forma, same-portfolio basis, management reported second-quarter revenue growth of 85%, substantially below the growth implied by comparing reported revenue across the two periods.
Ondas also recorded a second-quarter net loss of $89.7 million, and so the investment case depends on more than contract momentum. Investors must evaluate whether the expanded business can integrate its acquired operations, fulfill orders efficiently, and turn a larger revenue base into sustainable profitability.
8. Ouster, Inc. (NASDAQ:OUST)
Decline From 52-Week High: 53.38%
Number of Hedge Fund Holders: 31
Ouster, Inc. (NASDAQ:OUST) offers exposure to an important part of the robotics industry without manufacturing the robots themselves. Its LiDAR sensors help autonomous machines understand their surroundings, making the technology relevant to industrial automation, warehouse operations, and intelligent transportation. The company’s unified sensing and perception platform combines high-performance digital lidar, AI compute, cameras, sensor fusion and perception software, and cutting-edge AI models.
A significant development in Ouster’s strategy was its February acquisition of Stereolabs, which expanded its portfolio into stereo cameras, AI vision, and perception software. The combination gives Ouster a broader offering for robotics developers that require multiple sensing technologies.
There is evidence of commercial traction as well, as the company reported that its revenue for fiscal Q2 increased 56% year over year to $55 million, while shipments exceeded 17,000 total sensors shipped. GAAP gross margin improved to 49%, up 400 bps year over year and up 600 bps sequentially, suggesting progress in the economics of its hardware business.
Nevertheless, Ouster reported a GAAP net loss of $18 million, which translates into an improvement of $2 million year over year. Its acquisition also means investors need to distinguish growth in the existing business from revenue added through Stereolabs. Keeping these dynamics in view, investors need to direct their attention to whether Ouster can turn its expanded sensing portfolio and rising shipment volumes into consistently positive earnings.
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7. Ambarella, Inc. (NASDAQ:AMBA)
Decline From 52-Week High: 34.72%
Number of Hedge Fund Holders: 33
Ambarella, Inc. (NASDAQ:AMBA) is approaching the robotics opportunity through semiconductor technology rather than complete automated systems. Its edge AI processors support applications requiring computer vision and local data processing, including robotics, industrial equipment, and intelligent devices.
The significance of this approach lies in the growing computing requirements of autonomous machines. Processing information directly on devices can support applications where rapid responses and efficient power consumption matter. However, Ambarella’s opportunity remains broader than robotics alone, encompassing automotive and Internet of Things markets.
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The company’s second-quarter fiscal 2027 results showed revenue increasing 13.2% year over year to $108.1 million, while its GAAP net loss narrowed to $6.7 million from $20.0 million. Management also highlighted demand for its CV75 and CV72 AI systems-on-chip and the introduction of its X7 standalone AI accelerator.
Despite these improvements, GAAP gross margin declined from 58.9% to 57.7%, which is significant to note because stronger sales do not automatically guarantee corresponding improvements in profitability. For investors, Ambarella’s appeal depends on whether broader adoption of edge AI can produce sustained earnings growth, rather than simply expanding the number of applications its technology can serve.
6. Aeva Technologies, Inc. (NASDAQ:AEVA)
Decline From 52-Week High: 70.38%
Number of Hedge Fund Holders: 36
Aeva Technologies, Inc. (NASDAQ:AEVA) faces a particularly important commercialization challenge. The company develops advanced LiDAR sensing technologies for autonomous vehicles, industrial automation and robotics, but its reported revenue remains relatively small compared with the scale of its development spending.
Recent developments demonstrate why the technology continues to attract interest. In its August 2026 business update, Aeva announced that Bendix had selected its 4D LiDAR and perception software for development of a next-generation commercial vehicle driver-assistance solution. Industrial technology company SICK also launched its first sensor incorporating Aeva’s precision sensing technology.
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These agreements strengthen Aeva’s commercial credentials, but they should not be confused with established high-volume production revenue. The company’s second-quarter revenue stood at $6.1 million, compared with a GAAP operating loss of $34.6 million.
Aeva also raised capital through a $115 million follow-on equity offering, highlighting the importance of financing as its technologies move toward broader deployment. Investors evaluating the stock must therefore distinguish meaningful commercial validation from the financial results of large-scale adoption, which have yet to become evident in reported revenue.
5. Symbotic Inc. (NASDAQ:SYM)
Decline From 52-Week High: 56.84%
Number of Hedge Fund Holders: 39
Symbotic Inc. (NASDAQ:SYM) offers a relatively direct investment in warehouse automation, where its AI-enabled robotic systems manage the movement and handling of goods within distribution facilities. Unlike businesses still developing their first commercial applications, Symbotic has already established substantial operations and is working to expand deployment.
Its third-quarter fiscal 2026 results showed revenue of $721 million, up 22% year over year. More importantly, the company recorded net income of $55 million, compared with a net loss of $21 million a year earlier. Adjusted EBITDA also increased to $95 million from $45 million in the prior year period.
Warehouse automation requires substantial engineering, deployment, and integration work before customers can begin using fully operational systems. Symbotic’s profitability provides evidence that its growing business can generate earnings rather than relying entirely on expectations of future expansion.
However, the company ended the quarter with 77 systems in deployment, making the efficiency and timing of installations important to its continuing performance. Its cash balance also declined from $2.0 billion to $1.7 billion sequentially. For investors, sustained profitability alongside further deployments will be a more meaningful measure of progress than the size of its automation opportunity alone. Also read our recently published article on the 10 Best Dividend Stocks with Monthly Payout for more investment insight.
4. AeroVironment, Inc. (NASDAQ:AVAV)
Decline From 52-Week High: 69.11%
Number of Hedge Fund Holders: 44
The investment case for AeroVironment, Inc. (NASDAQ:AVAV) increasingly involves its ability to meet demand for autonomous defense technology while managing the operational complexity of a larger business. Its portfolio includes unmanned aircraft and other robotic systems, alongside capabilities in space, cyber, and directed-energy technologies.
AeroVironment entered fiscal 2027 with substantial contracted business. Its first-quarter results showed funded backlog reaching $1.5 billion, up 37% year over year, while quarterly bookings totaled approximately $0.7 billion. These figures provide evidence of customer commitments, particularly within defense markets where procurement decisions can have considerable financial significance.
However, revenue increased only 6% year over year to $480.5 million, illustrating the difference between securing business and recognizing sales. Non-GAAP adjusted EBITDA also declined to $53.4 million from $56.6 million.
That distinction is especially relevant as AeroVironment integrates acquisitions and expands manufacturing capacity. Its ability to fulfill government contracts on schedule and control production costs remains central to its financial performance. Investors therefore have to weigh substantial funded backlog against execution requirements and the company’s ability to translate defense spending into improving profitability.
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3. UiPath Inc. (NYSE:PATH)
Decline From 52-Week High: 30.80%
Number of Hedge Fund Holders: 48
UiPath Inc. (NYSE:PATH) differs from the physical robotics companies on this list because its automation technology operates primarily through software. The company is increasingly integrating robotic process automation with AI agents and enterprise workflow orchestration, extending its capabilities beyond repetitive rule-based tasks.
The investment question is whether this transition can strengthen UiPath’s existing business while creating additional commercial opportunities. In its second-quarter fiscal 2027 results, revenue increased 13% year over year to $410 million, while annualized renewal run-rate reached $1.938 billion, an increase of 12% year over year. Check out our comparative article on Salesforce vs. UiPath: Which AI Automation Stock Gives Investors More for Their Money? for more insight.
UiPath also reported GAAP operating income of $32 million and held approximately $1.405 billion in cash, cash equivalents, and marketable securities. These figures provide a stronger financial foundation than that of many smaller automation businesses still operating at significant losses.
Nevertheless, its dollar-based net retention rate of 109% shows that expansion within the existing customer base remains an important area to monitor. Growing competition in enterprise AI also makes product differentiation particularly relevant. For investors, the central issue is whether UiPath can convert its agentic AI strategy into sustained subscription growth without sacrificing its recent progress in profitability.
2. Regal Rexnord Corporation (NYSE:RRX)
Decline From 52-Week High: 36.55%
Number of Hedge Fund Holders: 62
Regal Rexnord Corporation (NYSE:RRX) provides investors with a more diversified approach to automation through motion-control technologies, precision motors, drives, and industrial power transmission systems. Its products support factory automation and other industrial applications, while its broader operations reduce dependence on any single robotics market.
The company’s second-quarter 2026 results showed signs of improving demand, with daily orders increasing 8.8% year over year and organic sales rising 3.3%. Free cash flow reached $154.1 million, providing an important distinction from automation companies whose expansion remains heavily dependent on external financing.
However, the profitability picture requires closer examination. Regal Rexnord’s adjusted EBITDA of $366.6 million included a $32.0 million benefit related to IEEPA tariff refunds. This makes it important not to attribute the entire reported improvement to recurring operational gains. Leverage also remains a consideration, as the company reported that net debt to adjusted EBITDA, including synergies, stood at 3.06 times at the end of the quarter. Read more about RRX’s bull and bear case here.
For investors, Regal Rexnord’s appeal lies in its established industrial operations and cash generation. Its ability to reduce leverage and deliver consistent underlying growth will be important in assessing the sustainability of its recovery.
1. Teradyne, Inc. (NASDAQ:TER)
Decline From 52-Week High: 43.77%
Number of Hedge Fund Holders: 82
Teradyne, Inc. (NASDAQ:TER) combines robotics exposure with an established semiconductor testing business, making it a distinct proposition among companies developing automation technologies. Its robotics operations include Universal Robots and Mobile Industrial Robots, which serve manufacturing and warehouse customers.
What distinguishes Teradyne is that its robotics opportunity sits alongside a much larger testing business. In its third-quarter 2026 results, Semiconductor Test generated $1,072 million in revenue, compared with $96 million from Robotics. This demonstrates that semiconductor demand, particularly demand connected to AI infrastructure, remains a considerably larger driver of the company’s financial performance.
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Nevertheless, the robotics business delivered its highest third-quarter revenue to date and achieved profitability. That development is important because it indicates progress toward making robotics a financially productive part of Teradyne’s operations rather than merely a longer-term growth initiative.
The company also reported total quarterly revenue of $1,306 million, up from 769 million in the prior year period, benefiting substantially from semiconductor testing demand. For investors, Teradyne offers exposure to two distinct technology markets. Its robotics business is improving, but the company’s overall investment case remains closely linked to semiconductor spending and the durability of demand across its testing operations.
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This article is originally published at Insider Monkey.
