The fusion of artificial intelligence (AI) with technology may evoke futuristic scenes, yet these two realms converge to amplify the potential of software enterprises. As technology permeates diverse sectors like agriculture and defense, the amalgamation of AI and robotics is poised to propel a $36.78 billion industry by 2030. Consequently, businesses venturing into this domain are labeled as AI technology companies due to their pivotal role in integrating these advanced technologies.
To evaluate the viability of investing in empirical AI software, two critical factors warrant consideration. Firstly, the assessment hinges on whether the company caters to a clientele necessitating integrated AI automation. Secondly, the value proposition of the products offered by the company to shareholders, buyers, and the overall business landscape must be scrutinized.
By addressing these pivotal inquiries, investors can aptly gauge a company’s commercial success or research relevance. Here are three stocks at the forefront of introducing innovative AI and robotics synergies in their respective industries:
Textron Inc. (TXT)
Source: Angel DiBilio/ Shutterstock.com
While numerous commercial entities delve into AI robotics, investors are advised to keep an eye on defense contractors. One notable player in this arena is Textron Inc. (NYSE: TXT), renowned for its groundbreaking ventures in combat technology. With a track record of securing lucrative contracts with the U.S. defense sector, Textron’s multiple subsidiaries consistently clinch long-term agreements.
Textron’s AI technology initiatives are gaining momentum, particularly with its M5 Ripsaw software earmarked for testing by the U.S. Army. Engaged in the Army’s Robotic Combat Vehicle Program, this mechanized system competes fiercely with counterparts, resembling a self-driving tank. Should Textron secure the contract, its stock price is poised for an upsurge.
Moreover, Textron’s robust financial performance and current PE ratios hovering around 20.60 hint at the possibility of the company being undervalued among defense contractor stocks. Hence, Textron emerges as a promising contender in the realm of AI robotics stocks that investors should consider.
UiPath (PATH)
Source: dennizn / Shutterstock.com
Originating from humble origins in Romania to servicing over 10,800 clients presently, UiPath (NYSE: PATH) stands out as an ascendant AI enterprise. Specializing in robotic process automation software designed to monitor user actions and automate repetitive tasks, UiPath offers cost-effective and efficient services to its clientele.
Despite facing profitability challenges over the past two decades, UiPath recently achieved its maiden quarter of GAAP profitability as per its Q4 2023 earnings report. Furthermore, the company witnessed a surge in customer spending last year, underscoring the perceived efficacy of its services.
For investors, UiPath’s current stock price dip coupled with its promising long-term prospects positions it as a compelling investment opportunity. As the company progresses towards sustained profitability, its value is anticipated to soar, presenting a lucrative growth trajectory.
Deere & Company (DE)
Source: Jim Lambert / Shutterstock .com
Though commonly associated with tractors and combines rather than cutting-edge AI and robotics, Deere & Company (NYSE: DE) is spearheading a transformation in this perception. With ambitions to pioneer a realm of automated tillers by 2030 through initiatives in autonomous tractors and machine learning, the company is reshaping the agricultural landscape.
Furthermore, boasting a PE ratio of 11.4, Deere & Company exhibits potential for further stock price appreciation. While queries linger regarding the company’s approach to tractor maintenance, its unwavering focus on profitability is evident.
Noteworthy is Deere & Company’s consistent revenue growth, escalating by 16.47% year-on-year. Despite minimal interaction between retail investors and farm equipment, DE has the potential to evolve into a household name akin to Tesla (NASDAQ: TSLA) revolutionizing personal electric vehicles. In light of these developments, Deere & Company’s foray into agricultural automation holds promise for the future.
On the publication date, Viktor Zarev did not hold any positions (directly or indirectly) in the securities referenced in this article. The views expressed herein are the author’s own, adhering to the InvestorPlace.com Publishing Guidelines.
Viktor Zarev, a distinguished scientist, researcher, and writer, specializes in elucidating the intricate realm of technology stocks with a steadfast commitment to precision and comprehension.
