Thus, investing in American robotics stocks may be a profitable idea, especially if you expect a second for Former President Donald Trump — or even a different Republican in the future. There is a possibility that a second administration may revert to the Trump administration policies in the past, which promoted domestic production and technological development.
So with that said, here are seven American robotics stocks that investors should consider. One should not discount these opportunities, especially if one is bullish on a potential second term for Trump and pro America-first policies.
UiPath (PATH)
Although UiPath (NYSE:PATH) is actually a Romanian-founded company, it has its base in New York City which means it may stand to benefit from “America First” policies.
The company’s emphasis on automation feeds into to the general concepts of the rejuvenation of American manufacturing and onshoring. UiPath’s focus on AI and especially generative AI correlates with the storyline of preserving American technological supremacy, especially in the context of rivalry with China. This is because a Trump presidency could see less regulation on American companies in emerging industries such as AI.
From an investment analysis perspective, UiPath has good revenue growth and a high gross margin which makes it a possible growth stock that can be sponsored by pro-business policies. Nevertheless, one should take into consideration that the company has had certain issues recently, such as the lowered guidance and changes in management. These would have to be balanced against the possible policy gains when designing an investment thesis.
Rockwell Automation (ROK)
Rockwell Automation (NYSE:ROK) is one of the biggest companies that deals with industrial automation and digital transformation, which makes it capable of capitalizing on policies that may favor local production and innovation.
Rockwell has a highly influential market share in industries such as automotive, semiconductors and oil & gas, and can benefit from the possibilities of infrastructure investment and energy policies under the Trump administration. The latest acquisitions made by the company include Clearpath Robotics that deals with autonomous mobile robots as well as CUBIC in renewable energy expanding the company’s business in other high growth areas.
Rockwell has short term challenges per is Q1’24 report which include economic conditions and inventory adjustments; however, the company’s outlook is bright in the future. Thus, the company’s cost containment initiatives and operational excellence coupled with a healthy balance sheet make it well prepared to withstand the prevailing market conditions.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA)’s GPUs and AI chips are used in robotics and autonomous cars and other contemporary solutions. In a second administration, Trump’s “America First” strategy may contribute to the growth of investments to these areas in order to develop the U.S. economy. Company strategies that include the development of AI and high performance computing platforms (HPCs) seem to fall under the strategic plans of the Trump administration concerning national security.
NVIDIA also remains the biggest supplier of chips for artificial intelligence with about 80% market share, making it one of the leaders of the new AI revolution. The desire of the Trump administration for technological dominance over competitors such as China may also lead to an increase in value for NVDA stock.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is known for its da Vinci surgical systems, which are widely used in robotic-assisted surgeries.
Trump’s policies on deregulation may prove advantageous for Intuitive Surgical. The company’s latest release of the da Vinci 5 system makes the company well placed to continue dominating the market.
The double digit procedure growth and revenue improvement of Intuitive Surgical proves that the company is in a better position to take advantage of the increasing number of minimally invasive surgeries. The business’s high margins and operational efficiency also make it easier for the company to benefit from Trump’s business-friendly policies.
Emerson Electric (EMR)
Emerson Electric (NYSE:EMR) is a leading industrial automation company fit to take advantage of any Trump administration’s policies directed towards the enhancement of the U.S. manufacturing and industrial power. Some products of the company include smart devices, control systems and software solutions.
The recent change in the company’s strategy to position itself in the automation and software solution segments show that Emerson is targeting high growth areas and may benefit from an even more friendly business environment. The company’s focus on Industrial Internet of Things (IIoT) and digitalisation is consistent with the possibility of focusing on technological leadership in the face of competition from China.
Despite the fact that Emerson has been trailing some of its competitors in the recent past, the company’s growth in profitability and its focus on automation, could make it a winner in case of Trump’s plans for the revitalization of the American industry. The company’s international presence also enables it to leverage on the reshoring trend while at the same time competing on the global stage.
Teradyne (TER)
Teradyne (NASDAQ:TER) is known for its testing equipment and significant presence in industrial robotics.
TER is involved in the designing and selling of automated test equipment for semiconductors and electronics, and thus, in a good position to benefit from the pro-American business policies that the Trump administration may come up with. This is important as the company’s testing solutions are useful in assessing the quality and reliability of semiconductors produced, which is relevant to potential interventions to strengthen the U.S. chip industry.
It is also engaged in the trials of 5G, automotive and industrial use cases that would enable it to capture potential infrastructure plans and technological agendas of a Trump administration. The focus areas of Teradyne include the testing of AI chips and high-bandwidth memory, which can also correspond to the possible focus on the maintenance of America’s leadership in the sphere of artificial intelligence.
Stryker Corporation (SYK)
Stryker (NYSE:SYK) is one of the largest companies in the medical equipment sector focusing on orthopedics, medical and surgical equipment and neurotechnology. The company is in a strong position to benefit from potential Trump administration policies that seek to encourage manufacturing in America.
Stryker’s strategy of investing in AI and digital health via the acquisition of Vocera Communications could be appealing to the Trump administration as well. SYK’s additive manufacturing and R&D facilities in the U.S are also very much in line with the €˜America First’ policy on manufacturing.
Stryker’s business has been expanding over the years, its cash flow has been improving, and the company has been investing in research and development as well as in strategic acquisitions, making it a good investment for an investor who wants to invest in a company that may benefit from a pro-business policies under a second Trump administration.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.