3 Robotics Stocks That Could 10X by 2035

Their robots are just absolutely insane and they were so far ahead.

>> Insights on investing in robotics from an engineer with an inside look at some of the most intriguing technology in the field.

>> It's technically not a public company, but there is a way you can still invest in it.

>> Kieran from the Fintech Channel shares three areas of robotics he's investing in and the three companies he sees as the strongest long-term potential.

>> The company's stock price is all over the place, which I think is actually a potentially good thing for investors.

I'm pretty happy looking at this company as a 10 to 20 year investment.

>> Kieran, so excited to have you on the show. I admire everything you do on your

show. I admire everything you do on your channel and I love your background too.

Engineering right?

>> That's correct. Um, I've done a lot of consulting for a lot of Fortune 500 companies in emerging technology. So, a

lot of software, a lot of AI, a lot of cloud. Kind of got exposure to all of

cloud. Kind of got exposure to all of it.

>> Wonderful. And that makes you a great expert for the topic we are talking about today. And that is three areas of

about today. And that is three areas of robotics to invest in with three specific stocks and they're kind of all over the place. So I'm excited about that today. Before we get into the three

that today. Before we get into the three stocks you are going to share with us today, let's talk a little bit about robotics in general, especially when it comes to investing. This has been such a hot topic for retail investors this

year. So, I think that there's been kind

year. So, I think that there's been kind of this trend in retail investing of trying to figure out what is the next technology that could be like the next AI, right? Cuz if you bought Nvidia 5

AI, right? Cuz if you bought Nvidia 5 years ago, you put $10,000 in, that'd be $120,000 today. But realistically, we're

$120,000 today. But realistically, we're not going to see that kind of growth again in a company that's already as big as an Nvidia. So then the question is, what technologies are there that are

still on the up and up? Jeff Bezos calls this catching the wave. How can we find the next wave to invest in? And I think robotics offers some reasons why that could be the next wave. Of course,

there's also some risks involved with it, but I think we'll we'll get into all of that as we go.

>> Yes, always a risk with any stock or investment, especially these early, more speculative plays. It's why we don't

speculative plays. It's why we don't give any specific financial advice on this channel, just some education for you to continue your own research in the future. I do want to say I like that

future. I do want to say I like that Jeff Bezos concept of always looking for that next wave of investing. And we have an article out on marketbeat.com right now that's kind of a similar concept.

It's a list of seven stocks that could be bigger than Nvidia, Tesla, and Google. You can scan the QR code or

Google. You can scan the QR code or click the link in the description to read that full article right now on marketbeat.com. So let's get into that

marketbeat.com. So let's get into that first area of robotics to invest in.

>> I kind of break it down into three areas. People break them down in

areas. People break them down in different area in different ways. One of

the main areas that a lot of people are focusing on is the consumer part of robotics. This would be like these, you

robotics. This would be like these, you know, futuristic robots that can do chores within your home. But I think a more interesting area to focus on is the software that is driving these robots.

And then the use case of robots in industrials as well as in logistics. So,

the first stock that I think we could probably focus on is the one that is probably the most useful in the short term because they're actually making profit creating robots for logistics companies.

>> Yeah, I think this is a name we've definitely talked about before on the channel, but it's interesting to talk about now uh simply because of all of the moves happening in it. So, let's get into this company.

>> So, the first stock that I think is worth talking about is Symbotic, and they're a company that focuses on automating warehouse production. They

kind of do the entire process. So

they'll work with companies that are actually supplying packages. They build

robots that make it so that they can take the packages that are coming in, store them into the warehouse, and then also be able to pick these packages and then deliver them out to various

customers as well. And the company has had a very kind of crazy run recently.

They dropped by as much as I think 30% in stock price within basically a couple days. Then they rose by 60% and then

days. Then they rose by 60% and then more recently they've dropped again. So

the company's stock price is all over the place which I think is actually a potentially good thing for investors because it gives us an indication that the market doesn't know what this stock

should be worth. It's not totally sure where to put the stock price. And so if we're able to understand something about this company that the broader market can't, that can offer us an opportunity

to buy the stock at a discount. At the

same time, it is a fairly risky stock because of the volatility. So, we'll

want to be careful about how we approach this one.

>> I think that's such an interesting point. I love that the way you said that

point. I love that the way you said that the market doesn't know how to price it.

I think that's happening in a lot of tech stocks. We've seen that in AI.

tech stocks. We've seen that in AI.

We're definitely seeing that in robotics. Talk about from the the

robotics. Talk about from the the technical perspective. Again, you're an

technical perspective. Again, you're an engineer. This is your specialty. Uh

engineer. This is your specialty. Uh

does a technology advance faster than what the market can understand often?

And is that what we're seeing quite frequently, especially with any kind of emerging technology right now?

>> I think we see both sides of the coin, right? So, when a technology first comes

right? So, when a technology first comes onto the scene, what tends to happen is people overestimate the technology. We

see a lot of money that gets poured into stocks and it goes into stocks that don't really deserve it. People can't

tell, is a company actually creating value or is it not? But what happens over time is people start to realize what forms of the technology are actually creating value. What are

actually the companies that make profits? And so Symbotic would kind of

profits? And so Symbotic would kind of fit into that latter category. The

technology that they're developing really focuses on one of the most common automation use cases out there. So I

think that yes, we label it as a robotic stock, but it's really an automation play. And automation is an industry

play. And automation is an industry that's basically as old as the stock market. I mean, it's been around since

market. I mean, it's been around since the early 1900s. And warehouses and shipping specifically have always kind of been on the bleeding edge of that technology. I mean, if we just look at,

technology. I mean, if we just look at, you know, a company like Amazon, right?

They're almost known for being incredibly automated and using all of these data analytics and software to try to make their processes more efficient.

But most companies aren't Amazon and most companies don't have access to Amazon style stuff. That's kind of where Symbotic comes in is they're operating in a lot of 3PL companies, so third

party logistics where they're able to make it easier for smaller companies, midsize companies, even big companies, just not Amazon scale to get those kinds of automations that a big tech company

like Amazon could have. Like you said, one of the issues with this is as the technology is moving, it's always going to be one step ahead of the market in terms of what they understand. But I

think we're at an area right now where people are starting to understand the logistics market specifically. And

that's one of the reasons that I think there's been a lot of attention on this stock recently. And so as the market

stock recently. And so as the market finally figures out what this should be worth, I think that stock price should start to settle down a little bit. But

it could take a little bit. It could

take several more quarters for that to happen.

>> Yeah, I think the interesting thing about Symbotic is it's not a new concept. It's not even that new of a

concept. It's not even that new of a company. Uh they've been in warehouses

company. Uh they've been in warehouses for a really long time. So, I want to talk about you're looking at this as a long-term play, kind of ignoring that short-term volatility in this stock.

What kind of innovations and what's going on within the company that makes you really confident that the long-term uh action on Symbotic is going to be positive?

>> So, Symbotic actually plays across the entire logistics market. There's

basically three areas. So the first are upstream suppliers, then in the middle you have distribution centers, and then at the end you have kind of last mile delivery. What I think is really

delivery. What I think is really interesting about symbotic is something that applies to all robotic stocks in general, which is how they control the environment. So when we look at

environment. So when we look at robotics, one of the biggest problems or one of the hardest things to solve in robotics is how do you get it to interact with the real world, right?

like it's not that hard to, you know, write a piece of software that makes a robot walk across a virtual room. It's a

lot harder to actually get it to walk across a room in the real world. And so

that's why robotics started out in a lab, the most controlled environment.

And we don't currently see a lot of robotics, you know, operating just out in the wild on a mountain somewhere.

That's the hardest environment to control. What Symbotic has figured out

control. What Symbotic has figured out though is they can actually build the warehouse in such a way where they control the warehouse environment itself and then they could design their robots

specifically for their environment which has two benefits. One, it's easier to build the robots so they can actually do it today. But two, it creates a certain

it today. But two, it creates a certain amount of lockin for their customers.

They can't just swap to a different robot because Symbotic actually owns the warehouse itself, which is just a really interesting business model. The other

thing that Symbotic does pretty well is they've been really focused on kind of integrating new technology as it comes out. They're not inventing, you know,

out. They're not inventing, you know, new AI models to make their robots better. They're not inventing new

better. They're not inventing new computer chips in order to make them run faster. They're incorporating all of

faster. They're incorporating all of this technology from other companies.

They recently partnered with Nvidia in order to use their Jetson Thor platform.

They haven't announced it publicly, but they're actively hiring four Jetson Thor experts to join their company right now.

So, we can actually see the behind the scenes as they're starting to incorporate all the latest technology.

And considering how their business is set up, I think they're set up pretty well to to succeed as they do that.

>> Yeah, Nvidia such a name that we have to talk about with robotics because they play such a big role in every area of robotics. Really good discussion on

robotics. Really good discussion on Symbotic. Moving on to that next area

Symbotic. Moving on to that next area which is another big name uh but an important area of robotics that I'm excited to talk about too.

>> Yeah. So the second area of robotics some people might kind of question how involved it really is in the robotics space but I think that I think it's easy

to overlook this company. So there was this viral video uh coming a few months back of this Neo robot. It was this robot that was able to kind of walk around your house and complete chores for you. It's really really cool.

for you. It's really really cool.

There's some cool footage of it. But the

thing is that a lot of people didn't realize this robot was just a dude wearing a VR headset that was actually controlling the robot and doing all the store the chores. So they had invented

the physical hardware to complete chores around the house, to fold laundry, to load the dishwasher, but they didn't have software that could do that.

Software is still one of the hardest parts of robotics. We've gotten to the point where you can build a robot, but unless it can understand what's happening in the environment around it

and then make a plan and act on it, it's not all that useful. And so the second stock that I think a lot of people are overlooking in robotics is actually Google. Google has been at the forefront

Google. Google has been at the forefront of robotics since the very beginning.

And they are now working on models, AI models specifically designed for robots to solve complex problems. They just launched a new version of Gemini Robotics. So, if you've used Chad GPT or

Robotics. So, if you've used Chad GPT or Gemini in the text editor, it's effectively the same thing, but it's designed for robotics to both understand the world around them, make a plan for

how to solve a problem, and then execute that plan, all without having to be trained on a specific task, which is a completely different approach to robotics. We think of robotics as just

robotics. We think of robotics as just automating something that's been done a million times. Google is now making it

million times. Google is now making it so that robots can solve problems they've never seen before. And this is a huge leap forward that a lot of people aren't talking about, but this alone

could be a multi-trillion dollar business for Google in 10 to 20 years.

>> So interesting. This is definitely not a name we've talked about with the robotics discussion before. And that's

probably because Google doesn't seem to be out there manufacturing robots. I

think when investors are looking at robotics companies, they're looking at who has a video of a robot that they're building, right? But Google is

building, right? But Google is controlling that other part and that is the data and the software like you said.

When I think about software, it's all about the data and information you have, too. And it seems like Google's a great

too. And it seems like Google's a great company for that because they have more information than most companies out there.

>> Yeah. And if we can get super nerdy for half a second, Google actually invented the type of AI that all these companies are using right now. It's called

generative adversarial networks. And

that's actually where the word generative AI comes from. Most companies

are using this technology to create these large language models like chat GPT. But it's actually that exact same

GPT. But it's actually that exact same technology that they are now applying to robotics, but they're training it on totally different data. Instead of

training it on, you know, all the words that are on the internet, they're training it on all this data they have around how robots should interact with the real world, how they can recognize an object, how they know how to reach

out, pick it up, and put it somewhere else. This is a totally different data

else. This is a totally different data set. It's a lot harder to get than just

set. It's a lot harder to get than just scraping the public internet. And so

that alone is a fairly big moat for the company.

>> Again, so interesting to look at uh Google as a robotics company. I want to talk about what this means for investors too and just the stock price. This is

already such a massive company. I I

think we had another guest on the channel in the last couple of weeks who said there might be even some discussions about is Google getting too big. I'm really curious how much

big. I'm really curious how much robotics could move Google's stock price. Could it have that much of an

price. Could it have that much of an impact at an already massive company? I

think in the short term we're probably not going to see robotics moving Google's stock price, you know, in a 1 to twoyear timeline. But in a 5 to 10year timeline, I could actually see robotics dominating the majority of

their stock price. So robotics, when we think about what that actually means, it also extends to self-driving cars. And

one of Google's companies that they own is Whimo, which is one of the biggest competitors in self-driving. There was a Forbes article recently that estimated that Whimo could be a trillion dollar

company all on its own. And so that alone would boost Google's stock price pretty significantly. But even in just

pretty significantly. But even in just the software space, Google recently hired the CTO of Boston Dynamics to come and take over their research division

for robotics. And his vision is to

for robotics. And his vision is to basically build the Android for robotics. So, in the same way that

robotics. So, in the same way that Google kind of created the software that every phone runs that's not an iPhone effectively, they want to do the same thing with robotics. They're going to

let other companies go and build the hardware, but the kind of expertise that you need to build software is not the same as hardware. And so, their bet is that all these companies will build this

really cool hardware and then they'll come to Google to create the operating system for that hardware. And Android is a massive business for Google already.

So you combine that with Whimo, there's multiple potential trillion dollar opportunities here. It's just a question

opportunities here. It's just a question of how likely they are to play out. Now,

the robotics specifically for Google is still part of their deep mind area. So

it's kind of still in research and development, so I wouldn't count on this moving the stock price in the very short term. But Google has shown time and time

term. But Google has shown time and time again that when a new technology comes out, they pretty much always benefit from it. And this area specifically, I

from it. And this area specifically, I think is going to be just like we've seen with generative AI, just like we've seen with cloud computing. Google is

going to be one of the biggest benefits of what's happening in robotics.

>> Yeah. Again, a really interesting way to look at if you believe in the future of robotics, this is going to be a huge investment area over the next 5 to 10 years. As you said, this is a good stock

years. As you said, this is a good stock to get into now for future growth down the road. I love this discussion on

the road. I love this discussion on robotics. I'm excited for this next area

robotics. I'm excited for this next area that's going to lead to some really interesting conversation too about that whether the US is winning in this this battle for the robotics race too. So

let's get into that third area of robotics investing.

>> The third area that we've seen a lot of robotics activity is in the industrials area. So think robots you could send

area. So think robots you could send down into a mine or robots that might be used in a manufacturing plant. This type

of robotics is a little bit harder than logistics, but we're starting to see a couple companies enter the space here.

One of those companies is Boston Dynamics, which is probably one of the most well-known robotics companies. It's

one of the companies that got me interested in engineering in the first place. Their robots are just absolutely

place. Their robots are just absolutely insane, and they were so far ahead as of 10 years ago. Now, Boston Dynamics hasn't been getting as much attention as a robotic stock, mainly because it's

technically not a public company, but there is a way you can still invest in it, which I'll talk about in a second.

But the key with Boston Dynamics is most of their customers are actually not located in the United States. In terms

of industrial automation, the vast majority of robots are actually going to Asia. I think the estimate is something

Asia. I think the estimate is something like 74% of industrial robots were purchased in Asia last year. and only

around 9% came to the Americas, which even if you adjust for population, Asia is investing way more heavily in these types of robots. And so, as Boston

Dynamics starts to commercialize more, they move away from just research and development and creating new robots into actually selling these robots, the Asian market is really, really interesting,

which ties in with how you can actually invest in this stock. So, Google

actually used to own Boston Dynamics.

Then in 2017, they sold the company over to SoftBank, the investment firm. And

then in 2021, Hyundai, the car company, actually bought Boston Dynamics from SoftBank, and they are now focused on commercializing them more, turning their

incredible lead in robotics into actual money for the company. I saw somewhere they said they would order 10,000 Boston Dynamics robots to help automate Hyundai's own production lines, which

would be worth something like $750 million to Boston Dynamics all on its own. And considering this company was

own. And considering this company was last valued at $1 billion, $750 million in revenue could double or triple their price just from that. Now, in order to

buy the company, you have to invest in their now parent company, Hyundai, which is about a $45 billion company. And so

the bet here would be one, you don't hate Hyundai so much that it kind of takes away your interest of investing in Boston Dynamics. And two, you believe

Boston Dynamics. And two, you believe Boston Dynamics can grow big enough that it can move the needle on Hyundai's stock price, which is a bit of a taller order, but I think it is possible.

>> A really interesting way to look at this because like you said, uh, Hyundai is something that we really, it's not a stock we ever talk about. It's not

something many investors are interested in. The car market in general has had an

in. The car market in general has had an interesting year. Hyundai stock really

interesting year. Hyundai stock really hasn't done much of anything. Um, do you think that Boston Dynamics has the potential to really become a bigger part of this business? Another thought I had

when you're talking about this is as Boston Dynamics maybe gets more demand, maybe becomes a larger company, is there a a chance that it changes hands, will

it continue to impact Hyundai um in the long term? Yeah. So, Hyundai is a Korean

long term? Yeah. So, Hyundai is a Korean company and the way they operate their corporations there is a little different from the US. My expectation if Boston Dynamics got big enough is that Hyundai

would actually spin them off as their own company in the future. But when they do that, the shareholders in Hyundai would still benefit. Now, Hyundai's had kind of a rough year. Uh they've been

affected pretty heavily by a 25% tariff from the US. And so, their profit in their latest quarter is down multiple tens of percent. And so this bet is very much not a short-term. You basically

have to be willing to hold through an entire auto market cycle in order to benefit from the robotics play in Hyundai. That being said, Hyundai as a

Hyundai. That being said, Hyundai as a company in general has actually started focusing a lot more on robotics. Their

VP of engineering has said that robotics is one of the most important things to the company going forward and it's ultimately what is going to differentiate them from other businesses. One interesting thought

businesses. One interesting thought experiment that kind of came to me as I was researching this company is what happened when Tesla announced their Tesla bot, right? The Tesla bot was

supposed to be this humanoid robot from Tesla. It was really just a lady wearing

Tesla. It was really just a lady wearing a suit on on uh on stage and then Tesla promising that they would build this in the future. Well, Boston Dynamics has

the future. Well, Boston Dynamics has the Atlas robot, which is already a humanoid robot that is incredibly advanced, probably the most advanced in the world. and Hyundai now owns that.

the world. and Hyundai now owns that.

And yet Hyundai doesn't see nearly the same increase in their stock price as Tesla does when they make a similar announcement. Part of that could be

announcement. Part of that could be people don't count on Hyundai to be able to continue to innovate like this. But

Boston Dynamics has shown time and time again that they can innovate like this.

And yet the stock market isn't rewarding them at all. I think because it's just buried beneath all these different layers of how you invest in it. It seems

kind of complicated. And so for a long-term investor, ultimately the market will recognize the value. And so

I'm pretty happy looking at this company as a 10 to 20 year investment.

>> Yeah, that Tesla comparison is a really good one here. Very similar uh having this robotics company tied up with the auto industry as well, which is similar in Tesla's business. It's not the the greatest part of Tesla, but so many

investors there invest for its robotics future for that company. One thing I want to talk about with Boston Dynamics, again, just curiosity, you had mentioned with Google, uh, one of the the positives for that is they hired

somebody from Boston Dynamics. Is that

going to to be a a potential detriment to Boston Dynamics now under Hyundai?

>> So, interestingly enough, I ran across a Medium article from an engineer at Boston Dynamics who is actually the former head of Google Deep Minds Robotics. So kind of what happened is

Robotics. So kind of what happened is they have just swapped people who used to work with them together which makes sense because Boston Dynamics used to be owned by Google. So there's already kind of a lot of crossover between those two

teams. But what I like is Boston Dynamics is really focused on building a hardware platform. I've actually used

hardware platform. I've actually used their spot robot, the little dog robot.

And the way that it works is it's almost like a computer. They create the computer. They create the operating

computer. They create the operating system. But you as a company need to

system. But you as a company need to write the code that runs on top of it.

Well, we've already seen that Google is now creating software that anyone can use on their robotics. So Boston

Dynamics and Google kind of play really well together. I could see a future

well together. I could see a future where people buy robots hardware from Boston Dynamics that are running Google software in the future. And there's so much cross collaboration between those teams. The teams I think have a similar

approach to building things. It's very

engineering first and so I don't see it as a risk. I actually see it as a good thing that there is cross collaboration here.

>> Yeah, that's very interesting. Uh the

the employee sharing makes a difference in these these major companies. Um I

loved your perspective, Kieran. Thank

you so much for bringing kind of more of a technology perspective to our channel when we're talking about stocks. It's

such an important thing to think about.

I do want to share your channel a little bit too. This is something that you talk

bit too. This is something that you talk about all the time on your own channel.

uh do you always give more of that um engineering background on the stocks that you're talking about?

>> Yeah, like I mentioned, my background is in engineering. Investing is just a

in engineering. Investing is just a passion and a hobby of mine. And so I like to focus on what are the most advanced companies in the world doing and actually explain what they do to

normal people so that we can figure out what is hype and what is actual potential value. And if we just follow

potential value. And if we just follow the data, I think that we can still do really well in the market even without having to, you know, get super into all the financials. We cover that as well.

the financials. We cover that as well.

But the main focus is understanding how is technology bringing value.

>> Yeah, it's a great way to to look at investing and to think about when you're looking at investments. If you want to check out Kieran's channel, it's fintech. I've got a little link and a QR

fintech. I've got a little link and a QR code you can scan to head over to his channel and check out more of his videos. Thank you again for this collab.

videos. Thank you again for this collab.

I really appreciate it and I hope you'll bear with me. We usually do a new segment called Bridget Spies. Whenever

we talk about the three stocks in our our show, I like to pick one to go onto my paper trading watch list uh at Market Beats. And so I think the most

Beats. And so I think the most intriguing one to me here is actually Hyundai. I know, like you said, it's

Hyundai. I know, like you said, it's probably not going to be a short-term payoff, which might hurt my watch list a little bit, but I think it's a really interesting way to look at investing

robotics and hopefully has a payoff down the road. We'll see. So, I think Hyundai

the road. We'll see. So, I think Hyundai is a great way to invest in what's happening in the robotics market in Asia while getting access to this American company, Boston Dynamics. I think it's a really interesting play.

>> Awesome. Well, thank you for bringing that idea and the other two for our viewers today. Again, I so appreciate

viewers today. Again, I so appreciate your time. Let us know what you think in

your time. Let us know what you think in the comments. Uh, do you think that

the comments. Uh, do you think that these are unique ways to look at robotics investing? Are they companies

robotics investing? Are they companies you've thought of before? Have you

watched Kieran's channel, Fintech, before? We'd love to hear from you in

before? We'd love to hear from you in the comments. Thanks again for watching

the comments. Thanks again for watching everyone. As always, happy investing.

everyone. As always, happy investing.