Investing In Automation With 3 Robotics Stocks Showing Real Growth

Robotics and automation stocks sit at the crossroads of several forces investors are watching closely, from labor shortages and inflation pressures to shifting supply chains and energy uncertainty. As physical AI moves from pilot projects to wider deployment, some companies in the Robotics and Automation Stocks screener are aiming to turn that demand into revenue while keeping balance sheets under control. This article introduces the robotics theme in the context of central bank moves, geopolitical risks, and uneven global growth. It also highlights 3 stocks from the screener that many investors are watching as focused ways to get exposure to this trend.

Kraken Robotics (TSXV:PNG)

Overview: Kraken Robotics is a marine technology company that supplies sonar and optical sensors, SeaPower deep sea batteries, and underwater robotic systems, along with survey and LiDAR services, to defense and commercial customers around the world.

Operations: Kraken Robotics currently generates CA$66.3 million from Products and CA$41.4 million from Services, with revenue concentrated in the Asia Pacific region at CA$57.1 million, followed by North America at CA$26.0 million and Europe, Middle East and Africa at CA$20.1 million.

Market Cap: CA$1.9b

Investors watching physical AI and subsea automation may find Kraken Robotics interesting because it sits where rising demand for unmanned underwater vehicles, mine countermeasures and offshore energy inspection meets a growing product and services portfolio that now includes the recently acquired Covelya Group and 3D at Depth. The company has reported sizeable 2026 order intake across defense and offshore markets and raised revenue guidance after closing Covelya. Analysts are currently incorporating revenue and earnings growth expectations over the next few years into their models. At the same time, Kraken Robotics is still loss making, carries higher risk funding, and is working through large acquisitions and board turnover. As a result, investors may focus on how its growth ambitions balance against integration, execution and valuation risks that are not yet fully resolved.

Kraken Robotics sits at the intersection of big defense orders, subsea automation and fresh acquisition risk, yet many investors still treat it as a simple small cap story. Get the full picture in the 2 key rewards and 1 important warning sign

AeroVironment (AVAV)

Overview: AeroVironment develops and supports uncrewed aircraft, loitering munitions, counter-drone systems, and space and cyber technologies that give militaries and government agencies aerial intelligence, precision strike capabilities, and secure communications.

Operations: AeroVironment generates about US$1.36b from its Autonomous Systems segment and US$618.8m from Space, Cyber and Directed Energy, with roughly US$1.42b from the United States and US$556.4m from international customers.

Market Cap: US$8.0b

AeroVironment operates in defense robotics and autonomy, with a growing backlog, recent multi hundred million dollar contracts, and a push into higher value areas like laser communications, directed energy, and counter UAS platforms such as AV Halo and Titan. Analysts currently expect revenue and earnings to grow, with forecasts for profitability within 3 years. The company is still loss making, return on equity is negative, and margins have come under pressure after the BlueHalo acquisition. Heavy reliance on U.S. defense spending and rapid tech change add further uncertainty. For investors who want exposure to physical AI and defense automation, the mix of contract visibility, growth expectations, and unresolved margin and funding risks makes AeroVironment a stock that may warrant closer examination within this screener theme.

AeroVironment’s push into higher value autonomy, space and counter UAS technology is accelerating, but its loss-making profile and pressured margins raise significant questions. Get the full analyst forecasts for AeroVironment before one detail flips the story.

Arm Holdings (ARM)

Overview: Arm Holdings designs and licenses the CPU, GPU, NPU and systems IP that sit at the heart of chips used in smartphones, cloud data centers, automotive, industrial IoT and robotics, earning upfront license fees and ongoing royalties when partners ship Arm based semiconductors. Rather than manufacturing its own chips in most cases, Arm provides the architecture that underpins products from major semiconductor companies, device makers and cloud providers worldwide.

Operations: Arm generates about US$4.9b from Semiconductor Equipment and Services, supported by a globally diversified customer base across the United States, PRC, Japan, Taiwan, Korea and other countries.

Market Cap: US$302.3b

Arm Holdings is drawing attention because it combines a high margin licensing and royalty engine with a push into in house AI data center CPUs. Management has cited more than US$2b of AGI CPU demand across fiscal 2027 to 2028 and a longer term ambition for much larger revenue. Forecast earnings growth of around 37% a year and revenue growth near 28% are presented as reasons why AI infrastructure is an important driver, while current profitability, high quality earnings and an experienced board are also highlighted. The trade off is a very rich valuation, significant price volatility, funding risk and questions about customer relationships and regulation as Arm moves closer to its largest clients.

Arm Holdings’ royalty engine and AGI CPU ambitions are getting all the attention, but the real story sits in the growth assumptions baked into current pricing. Unpack the analyst forecasts for Arm Holdings before one hidden pressure point emerges

The three robotics and automation stocks in this article are only a starting point. The full screener surfaces 31 more companies that share similarly compelling narratives around physical AI, labor shortages and capital discipline inside the Robotics and Automation Stocks screener. Use Simply Wall St to identify, filter and analyze the exact catalysts and balance sheet profiles that matter to you, so you can focus on the highest conviction opportunities within this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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