On June 13th, 2025, many publicly traded robotics companies jumped significantly on high trading volume. Unsurprisingly, the most recognizable names would have been NVDA (NVIDIA), FTI (possibly FANUC), TER (Teradyne), OUST (Ouster), EPAM (EPAM Systems). Yet, remarkably, no significant downturn in market trends appeared during this frenetic activity. This confluence of conditions led to an unprecedented investor scrutiny over the factors attracting investor interest and the long-term viability of these companies. Ciara O’Sullivan takes a look at what might be behind this market movement. Her honest assessment of the short-term realities compared to the long-term growth opportunities.

Understanding the Market Dynamics

On this day, trading volume in robotics stocks was unprecedented. This spike is a good sign that the investor community is burning with excitement, probably due to many reasons. One big piece is the inherent volatility that comes with tech stocks. Robotics companies usually end up fitting this description. As a result, they can be disproportionately affected by market fluctuations based on economic indicators, news cycles, and earnings reports. In this environment, short-term investor sentiment shifts quickly, resulting in large price changes and high trading volume. The small enterprise robotics sector (as represented by ROBO) has 25% greater daily volatility than even the S&P500 Industrial index.

Negative market sentiment can disproportionately affect robotics stocks. Stocks are susceptible to significant losses during downturns. This is especially the case for businesses that are highly reliant on niche industries, such as the auto industry. Just ask them what 2020 was like. You can typically find robotics firms with betas in the range of 1.3 to 1.8. This high range suggests they hold greater risk compared to the overall market. That’s to say, their upward and downward price movements are generally sharper during bull and bear markets alike.

Though these could be considered short-term headwinds, the robotics sector is currently flush with long-term growth catalysts. The need for greater automation and efficiency is at an all-time high across every industry. This boom fuels advances such as collaborative robotics, robotics in medicine, growth in drones and unmanned systems, and the explosion of consumer robotics applications.

Analyzing Individual Stocks

NVDA (NVIDIA)

NVIDIA is another major player to keep an eye on when it comes to the robotics sector, largely because of its innovations in AI computing hardware. The company’s GPUs are a critical component in the training of AI models employed in many robotics applications. Perhaps it’s a factor that can generate real excitement from the investor class—technological breakthroughs. For example, NVIDIA’s continued progress in humanoid robots and its “Jetson” line frequently lift the bullish mood and increase trading volume. Rising competition in the AI chip market or jitters over regulatory scrutiny might create bearish sentiment.

FTI (FANUC or Similar)

FTI probably stands for FANUC or some other such industrial robotics company. These Fortune 500 companies are frequently linked to the productive sector. Positive press regarding the growth of industrial automation, particularly in areas such as China, fuels investor excitement. Innovations in collaborative robots will only supercharge that enthusiasm. On the downside, economic slowdowns, escalating trade tensions or a rupture in supply chains may take their toll on these stocks.

TER (Teradyne)

Unlike other features of Teradyne, today Teradyne is best known for automated test equipment, a linchpin industry Teradyne now serves extensively in semiconductor and electronics manufacturing. The demand for semiconductors is skyrocketing, spurred by the explosive rise of AI and robotics. This surge would be expected to greatly improve Teradyne’s business. Positive earnings reports and exciting new product announcements are likely the reasons behind high trading volume in TER. Or maybe it just represents the trend of the booming semiconductor industry writ large. On the other hand, any slowdown in semiconductor sales or overall industry-wide competition would be discouraging for the stock.

OUST (Ouster)

Ouster is a global leader of high-resolution digital lidar sensors for the autonomous vehicle, robotics, and smart infrastructure industries. Higher trading volume in OUST would be a positive trend resulting from thrilling new advancements in the autonomous vehicle space. New partnerships and improvements in lidar technology may be playing a role, too. Unfavorable regulatory delays in adopting autonomous vehicles would be negative for the stock. Increased competition from other lidar companies and regulatory hurdles may be challenges as well.

EPAM (EPAM Systems)

EPAM is a leading global provider of digital platform engineering and development, digital transformation services and digital commerce. The thriving company assists governments and industries in creating and adopting robotics and AI innovations. Increased trading volume in EPAM could be linked to positive earnings reports, new contract wins, or overall growth in the digital transformation market. Any economic slowdowns, more competitive pressure from other IT services companies or project delays could weigh on the stock.

Navigating the Robotics Investment Landscape

The global robotics market is deeply interconnected and on track for astounding growth. It will increase from $74.1 billion in 2024 to more than $286.8 billion by 2032, reaching a CAGR of 18.4%. Growth is further accelerated by the convergence between AI and robotics. This innovation has the potential to create breakthroughs across multiple fields including healthcare, logistics and humanoid robotic technology. New companies such as Anduril Industries and AMP Robotics have raised massive rounds, showing that investors believe in the space. Robotics applications are quickly growing beyond the shop floor and into other sectors. Recycling, national defense, healthcare—these are all sudden hot industries to invest in.

If you’re an investor who wants to get a foot in the robotics market, make the effort to educate yourself. Know the specific risks and opportunities related to each firm. Investors should consider the following:

  • Diversification: Spreading investments across multiple robotics companies can help mitigate risk.
  • Long-term perspective: Robotics is a long-term growth story, so investors should be prepared to hold their investments for several years.
  • Due diligence: Thoroughly research each company's financials, technology, and competitive landscape.
  • Risk management: Understand the potential risks associated with investing in robotics stocks, including market volatility, technological obsolescence, and dependence on specific industries.

Insurers, just like investors, should focus on the companies that have the best grasp on how to do AI right. This includes having the right tools, fostering a culture of innovation, strong leadership, and a clear vision for the future. Investors can better tackle the robotics investment landscape by thoughtfully considering these aspects. This strategy could position the state to reap rewards from the sector’s stable, long-term growth.