AI and Robotics Market Growth

Artificial intelligence is gradually becoming a more common aspect of our daily lives. Most advancements so far have been in software, with applications primarily focusing on vehicles and, to a lesser extent, smartphones. The administration under President Trump aims to change this trend.

Commerce Secretary Howard Lutnick recently indicated the federal government is committing fully to robotics in the upcoming year. He noted that they are prioritizing robotics and advanced manufacturing as essential for reviving critical manufacturing sectors in the U.S.

Not surprisingly, stocks within the robotics field surged earlier this week, particularly those of Tesla. Looking at the bigger picture, forecasts suggest the global robot market could reach approximately $55.55 billion by 2032, up from around $22 billion today.

So, if you’re looking to capitalize on this long-term trend, here are three stocks worth considering.

Stock #1: Service Robots

Founded in 2017 as a part of Postmates, Serve Robotics designs and operates eco-friendly, AI-driven sidewalk delivery robots. Their main aim is to facilitate “last mile” delivery services, especially in urban settings, allowing businesses and restaurants to delegate deliveries to these autonomous units.

Currently, Serve Robotics holds a market cap of $878 million, though its stock has seen a slight decline of 2.4% this year.

While Serve hasn’t yet turned a profit—losing nearly double in the last quarter—revenue did rise alongside the number of operational robots. In Q3 of 2025, revenue reached $687,000, compared to $642,000 the previous year. The loss per share also grew, from $0.24 to $0.40.

In the first nine months of 2025, net cash used for operations rose to $50.6 million, up from $15.3 million the year before. However, the company’s liquidity remains solid, with $116.8 million in cash compared to a minor $1.7 million in short-term debt.

Analysts rate this stock as a Strong Buy, with an average price target of $18.50, indicating a potential upside of around 56.8%. Among seven analysts, five suggest it as a “strong buy,” one as a “fair buy,” and one as a “hold.”

Stock #2: Richtech Robotics

Richtech Robotics, initially established in 2016 as Richtech Creative Displays, focuses on developing robotic solutions to automate service tasks across various sectors like hospitality and retail.

This stock currently trades with a market cap of $632 million and has surged by 78.3% so far this year.

However, Richtech’s recent performance didn’t quite meet expectations; sales fell while losses increased. For the first three quarters of fiscal 2025, the company reported $3.6 million in revenue, a decline of 3.2% from the previous year. Losses also grew, from $0.07 to $0.11 per share.

Cash used in operations increased significantly, jumping to $11.2 million compared to $2.1 million the prior year. As of June 2025, Richtech had about $33 million in cash, with a negligible short-term debt of $40,000.

Analysts remain cautiously optimistic, rating it a “fair buy” with a price target of $4.50, equating to a 6.6% potential upside. Of the three analysts, two have a “strong buy” rating while one suggests holding.

Stock #3: Teradyne

Last on the list is Teradyne, one of the larger names in robotics. Established in 1960, the company specializes in automated testing systems for semiconductors and more, expanding into industrial automation and robotics over the years.

With a market cap of around $30.5 billion, Teradyne’s stock has seen a rise of 58.4% in 2025.

In their latest quarterly report, Teradyne exceeded expectations with revenue of $769 million—an increase of 18% year-on-year. Earnings also saw a boost, rising by 49.1% to $0.85 per share, surpassing the anticipated $0.79.

While net cash from operations did drop to $49 million from $166.3 million the prior year, the company ended with a healthy cash balance of $272.7 million, just above a $200 million short-term debt.

Taking these factors into account, analysts have rated Teradyne as a Moderate Buy, with the average price target being already surpassed. The high target of $215 indicates a potential upside of around 10.2%. Among 17 analysts, 12 rate it as a “strong buy,” one as a “fair buy,” three as a “hold,” and one as a “strong sell.”