4 Top Robotics Stocks to Watch in the Second Half of 2025

An updated edition of the May 7, 2025, article. 

The robotics industry stands at an extraordinary inflection point ahead of the second half of 2025, propelled by revolutionary AI integration that is creating transformative opportunities for players across every major sector. Some such players are Advanced Micro Devices AMD, Tesla TSLA, Cadence Design Systems CDNS and Serve Robotics SERV. This technological convergence promises unprecedented growth, with Benchmark International projecting a robust 15.1% annual expansion rate, which will drive the global robotics market toward an impressive $169.8 billion valuation by 2032.

The global industrial robotics market is indeed experiencing substantial growth, with projections estimating a value of $162.7 billion by 2030, up from $87.1 billion in 2024, signifying an 11% CAGR, per Market Research report. This growth is driven by factors like the increasing adoption of automation in manufacturing, advancements in robotics technology and the rising demand for enhanced productivity and safety in industrial settings. 

Healthcare represents another dynamic frontier where robotics excellence flourishes. The global medical service robots sector is poised to reach $51.9 million by 2030, with groundbreaking innovations from Johns Hopkins and Stanford research demonstrating robots mastering surgical procedures through video observation and mimicry. These advances promise enhanced precision and improved patient outcomes.

Collaborative robots (cobots) exemplify the harmonious future of human-machine partnerships. IDTechEx research forecasts an extraordinary 6,100% increase in cobot sales between 2025 and 2045, with food and beverage packaging applications experiencing particularly vigorous expansion. This collaborative approach maximizes both human creativity and robotic efficiency.

Defense and space exploration sectors showcase robotics' boundless potential. Companies like Palantir, Anduril and AeroVironment have secured major autonomous systems contracts, while SpaceX's innovative rocket-catching robotic arms and NASA's intelligent Mars rovers demonstrate space exploration capabilities.

The 2025 robotics landscape represents a pivotal moment where advancing technology, declining costs, and expanding applications converge to create exceptional investment opportunities. This AI-robotics fusion transcends individual industry transformation, fundamentally revolutionizing how humanity works, heals and explores. The future promises enhanced productivity, safety and innovation possibilities that will reshape civilization's trajectory through intelligent automation and collaborative technological partnerships.

The Robotics Screen makes it easy to identify high-potential stocks at any given time, just like the ones discussed below. Leveraging advanced tools, the thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.

Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

AMD Leads Robotics Market Through Adaptive Computing Solutions

AMD has established a comprehensive robotics portfolio in 2025, leveraging its adaptive SoC and FPGA solutions to power industrial automation and collaborative robots. The company's Kria SOM platform enables high-throughput AI sensor data processing, while its embedded CPUs support real-time digital twin simulations for predictive factory maintenance.

AMD's Versal and Zynq adaptive SoCs provide deterministic control for robot arms and extended LiDAR range for enhanced safety around humans. Strategic partnerships with ABB demonstrate market validation, with AMD technology integrated into GoFa collaborative robots. Their solutions span machine vision, medical robotics, and autonomous industrial vehicles, positioning Zacks Rank #3 (Hold) AMD as a versatile enabler of AI-driven robotics across multiple sectors through adaptive computing architectures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Tesla Leads the Robotics Revolution Beyond Automotive

Tesla stands at the forefront of the robotics revolution, strategically expanding beyond electric vehicles to reshape the future of humanity. This Zacks Rank #3 company's Optimus humanoid robot represents a transformative leap that could potentially eclipse Tesla's automotive business in value. With mass production plans targeting several thousand units in 2025 and ambitious goals of 50,000-100,000 robots by 2026, Tesla is positioned to address critical global labor shortages across multiple industries. 

The company's robotics vision extends even further into space, with plans to send Optimus to Mars aboard SpaceX's Starship by the end of 2026. This will showcase Tesla's unparalleled technological ambition and integration across Musk's companies. This Mars mission represents not just a technological milestone but a strategic competitive advantage no rival can match. Tesla's vertical integration in AI, manufacturing expertise, and autonomous systems create a formidable foundation for leadership in the emerging $20 trillion robotics and autonomous mobility markets, offering investors exposure to perhaps the most ambitious robotics vision of any public company.

Cadence Drives Robotics Innovation Through AI Processors

Cadence Design Systems has positioned itself as a critical enabler in the robotics sector throughout 2025, with the company consistently identifying robotics as a key market vertical served by its Intelligent System Design strategy. Its Tensilica Vision and AI processor IP portfolio directly powers robotic applications, as demonstrated through partnerships like Kneron's KL720 SoC, which targets "robotics and industrial control applications."

This Zacks Rank #3 company's Tensilica processors handle specialized imaging, vision processing, and sensor fusion capabilities essential for autonomous robotics systems, including radar, lidar, and AI processing. Additionally, Cadence's Reality Digital Twin Platform leverages AI and physics-based simulation to optimize robotic system design and operation, while its Neo NPU IP delivers up to 80 TOPS performance for edge AI processing in robotic applications, significantly improving system performance and power efficiency.

Serve Robotics Gears Up for Accelerated Automation Delivery in 2025

Serve Robotics exemplifies cutting-edge innovation in the delivery sector with its AI-powered, eco-friendly sidewalk robots that brilliantly combine sustainability with economic efficiency. Since its successful spin-off from Uber in 2021, Serve has demonstrated remarkable market traction, completing tens of thousands of deliveries for prominent partners like Uber Eats and 7-Eleven, while securing impressive multi-year contracts that include deploying up to 2,000 robots across multiple U.S. markets. 

Serve's latest Gen3 robots represent a significant technological leap forward, featuring level 4 autonomy that enables independent navigation on footpaths, an impressive 11 mph top speed (60% faster than previous models), extended operational capacity through 67% increased battery life and dramatically enhanced computing power. With ambitious expansion plans for 2025 targeting vibrant markets like Miami, Atlanta and Dallas, this Zacks Rank #3 company is positioned to transform the urban delivery landscape nationwide.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research