In this article, we will discuss the best robot stocks under $10. Before we move on to the list, let’s have a look at the market outlook for robots.
The concept of lifelike machines performing human tasks is appealing to some and unsettling to others. However, robotics is not about replacing humans, but automating repetitive tasks so people have more time for meaningful activities. Recent breakthroughs such as generative artificial intelligence (AI) services like ChatGPT are accelerating the adoption of automation in organizations. Robotics has already transformed our daily lives, from manufacturing and logistics to medical technology and even the home, revolutionizing many industries and streamlining manufacturing production lines. Most people interact with robots in some way. For example, Sony Group Corporation offers the AIBO series, an autonomous entertainment robot for the home, and iRobot Corporation offers the Roomba, a robotic vacuum cleaner for home cleaning. In addition, companies such as Alibaba Group Holding Limited and Amazon.com, Inc. are using robots to automate warehouse management and product delivery to customers.
According to Market Research Future, the global robotics market is on a remarkable growth trajectory, reaching $59.7 billion in 2022. The market is expected to exceed $200 billion by 2030, with a projected CAGR of 16.1% between 2023 and 2030. This growth reflects the increasing integration of robots across various sectors. Reflecting this growth, a recent press release from the International Federation of Robotics (IFR) highlighted the significant investments in automation by U.S. manufacturing companies, with industrial robot installations growing 12% in 2023 to reach 44,303 units. The automotive industry has emerged as a leading adopter of robots in the U.S., followed by the electrical and electronics sector. IFR reports that the automotive sector’s sales will grow 1% in 2023, with a record 14,678 robots installed. This follows a 47% increase in 2022, with 14,472 installations.
The robotics industry thrives on healthy debate, and one of the most heated debates in recent times is about humanoid robots. While the topic has been important for decades, the rise of startups like 1X and Figure, as well as projects from major companies like EV market leader Tesla, has brought humanoids back into the spotlight. Proponents argue that our world was designed for humans, so it makes sense to create robots in the image of humans. Humanoid robots offer advantages in areas such as reach, ability to climb stairs, and dexterity.
In this context, the robotics industry has attracted the attention of prominent tech figures. Earlier this year, Bill Gates profiled several “cutting-edge robotics startups and labs” that interest him, including three focused on developing humanoids. First up is Agility Robotics, an American startup that has developed a multipurpose, human-centric robot designed for logistics tasks. The nearly human-sized robot can handle heavy loads and express “emotions” through LEDs on its face to improve interactions with human colleagues. Another notable initiative is Israeli startup Tebel. The company has deployed autonomous flying robots that continuously selectively harvest fruit, so that ripe apples are picked around the clock. Gates also mentioned Aptronic, which is developing robots that could potentially assist astronauts on lunar and Mars missions.
Our Methodology
For this list, we combed through various ETFs and internet rankings covering robotics stocks to come up with our initial list. We then selected the top robotics stocks trading under $10 based on the overall hedge fund sentiment towards each stock. This evaluation was done using data from Insider Monkey’s database, which tracks 919 elite hedge funds as of the end of the first quarter of 2024. The list is organized in ascending order by the number of hedge fund holders for each company. Why track stocks that hedge funds are flooding? The reason is simple: our research shows that you can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (more details here).
8. Nauticus Robotics (NASDAQ:KITT)
June 11th stock price: $0.27
Number of hedge fund holders: 1
Based in the Houston area, Nauticus Robotics, Inc. (NASDAQ:KITT) specializes in the development of marine robotics, autonomous software, and services for the marine industry. Nauticus provides robotic products and services to commercial and government customers through a Robotics-as-a-Service (RaaS) business model, as well as direct sales of hardware platforms and software licenses. In addition to standalone services and products, the company develops a range of technology solutions for retrofitting and upgrading legacy systems and other third-party vehicle platforms.
Earlier this February, Nauticus Robotics, Inc. (NASDAQ:KITT) secured its first round of funding through the end of 2023, with many of the dilutive warrants and ratcheting provisions of the original SPAC unraveling financing reportedly removed. The new investment is expected to accelerate the certification of Nauticus’ Aquanaut robot, which turns tethered ROV operations into fully autonomous. The flagship robot is set to perform a variety of tasks in water depths ranging from 200 meters to over 2000 meters in preparation for its first job: inspecting a deepwater production facility for a major oil and gas company in the Gulf of Mexico. The company expects to generate daily revenue from its Aquanaut Mark 2 vehicle starting in the third quarter of 2024.
In Q1 2024, Nauticus Robotics, Inc. (NASDAQ:KITT) plans to begin final assembly of Vehicle 1 and begin testing with Florida Atlantic University in Q2, potentially reducing monthly certification costs by up to 90%. Assembly of Vehicle 3 is pending and will begin once the first two vehicles are revenue generating.
7. Miomo Co., Ltd. (NYSE:MYO)
June 11th stock price: $3.69
Number of hedge fund holders: 3
Myomo, Inc. (NYSE:MYO), based in Boston, Massachusetts, is a medical robotics company that enhances mobility for people with neurological disorders or upper limb paralysis. The company has developed and patented arm prostheses designed to restore function to paralyzed or weak arms.
In Q1 2024, Myomo, Inc. (NYSE:MYO) reported revenue of $3.8 million, up 9% from Q1 2023. The growth was driven by increased unit sales, partially offset by lower average selling prices (ASPs). The company recognized revenue on 91 MyoPro units in Q1 2024, up 14% from the same period last year. Additionally, as of March 31 of this year, the company’s MyoPro pipeline contained 1,112 patients, up 30% from 855 in Q1 2023. A record 493 patients were added to the pipeline in Q1 2024, up 12% from the same period last year.
Orrin Hirschman’s AIGH Investment Partners became the largest shareholder in Myomo, Inc. (NYSE:MYO), with its stake valued at more than $9.16 million as of the end of the first quarter of 2024.
6. Rewalk Robotics, Inc. (NASDAQ:LFWD)
June 11th stock price: $4.65
Number of hedge fund holders: 3
ReWalk Robotics Ltd. (NASDAQ:LFWD), which rebranded to “Lifeward” in January, specializes in the development, manufacturing, and marketing of wearable robotic exoskeletons for people with lower limb disabilities due to spinal cord injury or stroke. Founded in 2001, the company has headquarters and operations in the United States, Israel, and Germany.
In the first quarter of 2024, ReWalk Robotics Ltd. (NASDAQ:LFWD) reported revenue of $5.3 million, reflecting a significant increase from $1.2 million in the same period in 2023, an increase of $4.1 million, or 340%. Revenue from sales of former ReWalk branded products reached $2.5 million, up $1.3 million, or 90%, year-over-year. The growth was primarily driven by increased sales of the ReWalk system due to expanded access through Medicare payments. In addition, revenue from the company’s AlterG products and services reached $2.8 million. However, AlterG revenue was temporarily impacted by the integration and training of the former ReWalk and AlterG commercial teams in the first quarter of 2024, which reduced sales capacity during this period. That said, the company expects sales training and integration completed in the first quarter of 2024 to improve sales effectiveness and productivity in the second quarter of 2024.
According to Insider Monkey, Nevada-based investment firm Kent Lake Capital is the largest shareholder in ReWalk Robotics Ltd. (NASDAQ:LFWD), holding 157,361 shares valued at over $822,998.Three hedge funds tracked by Insider Monkey held $905,000 worth of ReWalk Robotics Ltd. (NASDAQ:LFWD) stock by the end of the first quarter of 2024, down from four funds in the previous quarter.
