Recently, the surge in the robotics industry has truly attracted a lot of attention. Looking back at the performance in the first few months of this year, many robotics concept stocks have delivered impressive results, but the question is—which of these stocks are truly valuable? Which are worth long-term attention?

Honestly, the robotics track is now at a critical crossroads. Breakthroughs in AI technology have opened up new possibilities for the entire industry, but only a few companies can truly seize the opportunity. I recently reviewed some financial reports and found an interesting phenomenon: those companies that continuously invest in R&D and have a complete industry chain layout tend to have significantly more stable stock performance.

First, let's talk about Taiwan stocks. Delta Electronics (2308) is a company I’ve been following. According to their financial report, their net profit after tax for the third quarter exceeded 18.6 billion NT dollars, a 50% year-over-year increase, with earnings per share surpassing 7 NT dollars, setting a quarterly record. Even more impressive, October revenue reached over 57.3 billion NT dollars, nearly a 50% increase year-over-year. Why is it so strong? Because they have 20 manufacturing bases worldwide, thousands of production lines, and a deep understanding of industrial automation that’s not comparable to others. They are also planning new products like AI server power supplies and liquid cooling systems. This is a typical example of a high-value robotics concept stock—not just making parts, but upgrading entire systems.

Chroma (2360) is also worth noting. Although they don’t directly manufacture robots, as a global leader in testing equipment, their position in the robotics industry chain is crucial. Their earnings per share for the first three quarters more than doubled year-over-year, with a gross margin close to 60%. In the third quarter alone, net profit was 5.07B NT dollars, a 1.59-fold increase quarter-over-quarter. They provide high-precision testing platforms supporting various product lines such as industrial robots, collaborative robots, and autonomous mobile robots. Leaders in niche fields are often underestimated, but based on the data, their growth momentum is quite solid.

Tatung (1504) takes a different approach. With over half a century of experience in motor and drive technology, the company is now shifting from a simple component supplier to a system integrator. They provide robotic arms, autonomous mobile robots, and overall production line planning through their factory automation division, with real applications in warehousing, logistics, and semiconductor manufacturing. Their net profit for the first three quarters was 4.19B NT dollars, with continuous improvements in gross margin and operating profit margin. Companies undergoing this kind of transformation often have greater growth potential.

Turning to the US stocks, Palantir (PLTR) and AeroVironment (AVAV) have performed remarkably, with gains exceeding 80%, mainly benefiting from the defense sector’s demand for autonomous systems. AMD (AMD) also has a comprehensive layout in high-performance computing hardware, with gains over 80%. These companies represent another dimension of the robotics industry—combining software, unmanned systems, and computing hardware.

I’ve observed a pattern: the value of robotics concept stocks mainly depends on three factors. First is market demand— the humanoid robot market is projected to exceed $2 billion by 2027, with a compound annual growth rate of 154%, which is a real growth space. Second is R&D investment—companies that keep investing in technological innovation tend to have greater long-term return potential. Third is industry chain position—whether upstream components, midstream integration, or downstream applications, being a leader in each domain can turn a stock into a ten-bagger.

Of course, risks must also be acknowledged. Robotics technology evolves rapidly, policy changes can have impacts, and labor market disruptions are long-term issues. But if you can find companies with both market demand, technological reserves, and ongoing innovation, the opportunities in robotics concept stocks are still significant.

Finally, I suggest not just looking at the price increase but also at the company’s cash flow investment situation and industry position. Companies that have maintained high or steadily increasing R&D cash flow over the past five years are often more worth holding long-term. The robotics track indeed represents the future technological direction. If you find the right companies and participate in the benefits brought by this wave of technological progress, there’s still a lot of room for imagination.