Is it worth buying robotics stocks under $10?

We recently made a list 8 Best Robotics Stocks Under $10In this article, we’ll take a look at where Nauticus Robotics, Inc. (NASDAQ:KITT) stacks up against other robot stocks under $10.

The concept of lifelike machines performing human tasks is fascinating to some and unsettling to others. However, robotics is not about replacing humans; it is about automating repetitive tasks to free up people for meaningful activities. Recent breakthroughs such as generative artificial intelligence (AI) services like ChatGPT have accelerated the adoption of automation in organizations. Robotics is already transforming our daily lives, from manufacturing and logistics to MedTech and even our homes, revolutionizing many industries and streamlining production lines in manufacturing. Most people interact with robots to some extent. For example, Sony Group Corporation offers the AIBO series, an autonomous entertainment robot for the home, while iRobot Corporation offers Roomba robot vacuums for cleaning the home. Additionally, companies such as Alibaba Group Holding Limited and Amazon.com, Inc. use robots to automate warehouse management and deliver products to customers.

According to Market Research Future, the global robotics market reached $59.7 billion in 2022 and is on an impressive growth trajectory. The market is expected to exceed $200 billion by 2030, driven by a projected 16.1% CAGR between 2023 and 2030. This growth reflects the increasing integration of robotics across sectors. Reflecting this growth, a recent press release from the International Federation of Robots (IFR) highlights significant investments in automation by U.S. manufacturing companies, with industrial robot installations increasing by 12% to 44,303 units in 2023. The automotive industry has emerged as the leading user of robots in the U.S., followed by the electrical and electronics sectors. IFR reports that automotive sales rose 1% in 2023, with a record 14,678 robots installed, up 47% in 2022 with 14,472 units installed.

The robotics industry thrives on healthy debate, and one of the most heated recent discussions has centered around humanoid robots. While the topic has been relevant for decades, the rise of startups like 1X and Figure, along with projects by established companies like electric vehicle leader Tesla, has brought humanoids back into the spotlight. Proponents argue that because our world was designed for humans, building robots in our image makes sense. Humanoid robots offer advantages in terms of reach, the ability to climb stairs, and dexterity.

The story continues

In this context, the robotics industry has caught the attention of high-profile tech figures. Earlier this year, Bill Gates highlighted several “cutting-edge robotics startups and labs” that excite him, including three companies focused on developing humanoids. Gates started with Agility Robotics, a US startup that has developed a human-centric, multi-functional robot designed for logistics work. The robot, roughly the size of a human, can handle heavy loads and express “emotions” via LEDs on its face to enhance interaction with human coworkers. Another notable initiative is Tevel, an Israeli startup that deploys autonomous flying robots for continuous selective fruit picking, ensuring a 24-hour harvest of ripe apples. Gates also mentioned Apptronik, whose robots have the potential to assist astronauts on missions to the moon or Mars.

Our methodology

For this list, we scoured various ETFs and online rankings covering robotics stocks to compile a preliminary list. Then, we selected the top robotics stocks trading below $10 based on the overall hedge fund sentiment toward each stock. This evaluation was done using data from Insider Monkey’s database, which tracks 919 elite hedge funds through the end of the first quarter of 2024. The list is sorted in ascending order by the number of hedge fund holdings at each firm. Why do we track stocks that hedge funds invest in? The reason is simple: Our research has shown us that we can outperform the market by mimicking the top stock picks of top hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

An autonomous underwater vehicle (AUV) gliding through the depths of the ocean.

Nauticus Robotics, Inc. (NASDAQ: KITT)

Share price as of June 11: $0.27

Number of hedge fund holders: 1

Nauticus Robotics, Inc. (NASDAQ:KITT), headquartered in the Houston area, specializes in developing ocean robots, autonomous software and services for the ocean industry. Nauticus provides its robotic products and services to both commercial and government customers through a Robotics-as-a-Service (RaaS) business model, as well as through direct sales of hardware platforms and software licenses. In addition to standalone services and products, the company has developed a range of technology solutions to upgrade and enhance legacy systems and other third-party vehicle platforms.

Earlier in February, Nauticus Robotics, Inc. (NASDAQ:KITT) secured its first round of financing before the end of 2023, which reportedly eliminated many of the dilutive warrants and ratchet provisions of the original de-SPAC financing. The new investment is expected to accelerate certification of Nauticus’ Aquanaut robot, which transforms tethered ROV operations into fully autonomous operations. The flagship robot is expected to perform a variety of tasks at depths ranging from 200 to over 2,000 meters in preparation for its inaugural mission to inspect a deepwater production facility for a major oil and gas company in the Gulf of Mexico. The company expects to generate daily revenue from the Aquanaut Mark 2 vehicle by the third quarter of 2024.

In the first quarter of 2024, Nauticus Robotics, Inc. (NASDAQ: KITT) began final assembly of Vehicle 1 and plans to begin testing with Florida Atlantic University in the second quarter, potentially reducing monthly certification costs by up to 90%. Assembly of Vehicle 3 is underway and will begin once the first two vehicles begin generating revenue.

Overall, KITT ranks #8 on our list of the best robotics stocks to buy under $10. You can visit 8 Best Robotics Stocks Under $10. to see other robotics stocks that are on the hedge fund radar. While we recognize KITT’s potential as an investment, our belief is based on the belief that AI stocks are more promising in terms of delivering higher returns and doing so in a shorter time frame. If you’re looking for AI stocks that are more promising than KITT but are trading at less than 5 times earnings, check out our report on cheapest AI action.

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Disclosure: None. This article was originally published on Insider Monkey.