With interest in generative artificial intelligence at a fever pitch this year, it is no surprise that the most promising robotics stocks are garnering attention. Artificial intelligence and robotics are symbiotic in many ways. Hence, AI is the driving force behind the development and advancements in robotics.

As per the latest projections by Statista, the revenue generated by the global robotics market is expected to surge considerably and reach a whopping $34.94 billion by the year 2023. Service robotics will hold the lion’s share among the various market segments. This rapid growth of the robotics industry is attributable to the great advancements in artificial intelligence.

However, it’s crucial to note that the advent of robotics doesn’t aim to replace humans; instead, it seeks to automate menial and repetitive tasks, enabling humans to focus on more meaningful activities. The recent advancements in robotics are leading to a surge in automation.

Considering this scenario, investing in the most promising robotics stocks is a lucrative opportunity. As the adoption of robotics increases, the demand for sophisticated and intelligent robotic systems is expected to surge, paving the way for substantial growth opportunities in the industry.

Consequently, the article is a starting point for investors looking for the most promising robotics stocks. However, your risk profile depends on whether you want to invest in these stocks. Traditionally, these stocks are riskier than utility stocks or dividend stocks. Therefore, caution is advised.

However, they can help diversify your portfolio and set it up for success. Keeping this in mind, let’s explore three of the most promising robotics stocks to buy now.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) leads the way in semiconductor technology. The company’s cutting-edge circuitry designs, including robotics, open up several avenues for high-end computing processes. Robots can perform complex tasks with Nvidia’s expertise with remarkable efficiency and precision. Hence, Nvidia products are at the forefront of significant strides in autonomous machine development.

The application of Nvidia’s GPUs (graphics processing units) is revolutionizing computing by significantly speeding up the data processing time. Nvidia’s impact spans various devices, from data centers to personal computers and IoT devices. For a complex system such as a robot, swift computation is a prerequisite, and Nvidia’s GPU technology fulfills this requirement to perfection.

One of the prime examples of Nvidia’s expertise lies in its “Jetson” lineup of modules. These modules, equipped with cutting-edge AI and machine learning software, have various use cases.

Jetson’s circuitry designs enable robots to perform intricate tasks with remarkable speed and precision, making them an invaluable asset in developing autonomous machines.

However, Nvidia bears will point to concerns surrounding the buildup of inventory levels due to a decline in gaming revenue, which dropped by 51% year on year in the last quarter due to a weak PC market.

This has led to concerns that the company may struggle to sell its GPUs quickly, resulting in inventory write-downs, higher storage costs, and discounts, which could negatively impact Nvidia’s bottom-line performance.

Nevertheless, this situation presents an opportunity for value investors. Nvidia is known to trade at high multiples usually. So, there is a good chance the stock will pay you back substantially once the economy starts growing again.

UiPath (PATH)

The world of robotics is not only about physical machines. Interestingly, many robots exist in the virtual world, performing various tasks within computers and cloud computing systems. UiPath (NYSE:PATH), a pioneer in robotic process automation (RPA), specializes in developing and supporting software bots capable of handling virtual tasks.

These bots can work as virtual assistants to human workers, streamlining their workload and boosting productivity. With UiPath’s cutting-edge RPA technology, organizations can automate their routine tasks. Apart from freeing up resources, this also leads to substantial cost reduction.

UiPath’s robots may not exist physically, but their efficiency in executing office tasks such as data collection, form entry, compliance, and customer relationship management is remarkable.

UiPath’s cutting-edge software solutions are essential for organizations grappling with employee shortages after the COVID-19 pandemic. With the ability to automate time-consuming tasks, UiPath’s virtual bots enable companies to optimize their workforce and reallocate employees to more strategic roles, making the firm a top player in the applied robotics industry.

UiPath recently reported impressive earnings exceeding Wall Street’s projections. The robotics company is poised to maintain stable revenue growth in 2024 as it expands its adjusted operating margins.

UiPath’s strong financial performance and growth prospects make it attractive. Furthermore, UiPath is trading at an attractive valuation right now. The stock is down more than 44% over the last 12 months. Hence, this is one name to remember when researching the most promising robotics stocks.

Teradyne (TER)

Teradyne (NASDAQ:TER) is a renowned developer of industrial equipment that focuses on automating repetitive tasks.

Testing products to ensure their functionality in the electronics manufacturing industry is laborious and time-consuming. Teradyne’s cutting-edge robotics technology frees up human resources from this activity. As a result, Teradyne’s products speed up the testing and verification process while enhancing the precision of device testing before product launch. Teradyne’s industrial equipment has become an indispensable asset for electronics manufacturers worldwide by streamlining the testing process.

Teradyne’s cutting-edge robotics technology facilitates automation in various domains, enabling greater efficiency and productivity. The company constantly strives to improve its robotic equipment, ensuring it remains at the forefront of industrial automation technology.

Teradyne’s sustainable revenue stream is fueled by the arms race for semiconductors, critical components in various domains such as data centers, gaming, computers, defense, automotive, and IoT. This semiconductor demand will remain strong for the next decade, providing Teradyne with a stable revenue source.

Furthermore, Teradyne and Advantest’s duopoly in the semiconductor test industry is a significant barrier to entry for competitors. The situation ensures stable revenues and reasonable pricing for both companies. This dominant market position enables Teradyne and Advantest to exert greater control over the industry, making it difficult for other players to enter and gain a foothold.

The stock is down over 12% over the last 12 months. Hence, the time to buy is now.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.