Lately, observing the robotics stock sector has been quite interesting. It’s no longer just about pure industrial robots; the addition of AI is reshuffling the entire industry ecosystem.

First, let’s talk about Taiwan stocks. Quanta (2382) has the most complete story, not just as a server foundry, but its subsidiary Daming Robotics is the real key. AI vision combined with collaborative arms, backed by Quanta’s server computing power. Their deep partnership with NVIDIA is evident from Q1 financials—revenue of 809.2B yuan, up 66.6% year-over-year, with AI servers accounting for over 75%. Although gross margin dropped to 4.78%, this was due to high-priced cabinet shipments causing dilution effects. The company says there’s a chance to improve in the second half. Currently, robot business revenue is still in the single digits, but the gross margin is much higher than the foundry average, which is the real leverage for Quanta’s transformation.

Advantech (2395) is taking a different route. Edge AI revenue grew 67% year-over-year in the first quarter. Their strength lies in integrating sensors, AI software, and industrial certification into ready-to-use solutions. They are deeply tied with NVIDIA and have decades of industrial experience, making this combination hard to replicate. Long-term order visibility remains above 1.5, and as the proportion of high-margin products increases, profit quality continues to improve.

Hiwin (2049) is extending from traditional machine tools to high-end robots. Robot revenue already accounts for over 12% in Q1, up more than 40% annually. They have collaborations with American AI logistics robot companies, and shipments of humanoid robots are expected to increase quarterly. EPS hit a six-quarter high of 1.64 yuan, with product price hikes of 7% to 15%, and gross margin pushing above 30%. However, the stock price is relatively high and volatile, so risk management is essential.

Dah Yen Micro Systems (4576)’s air bearing positioning platform is essential for advanced semiconductor packaging. With exploding demand for AI chips and increasing precision requirements from wafer fabs, they have established a solid technological moat. The robot market started harvesting this year, with large shipments of new drives, and revenue from controllers and motion control components is growing. Cumulative revenue in the first four months increased 43.95% year-over-year, with a gross margin maintained at a high level of 39%, and order visibility extends into Q4.

Solomon (2359) provides software solutions—3D vision, defect detection, robot control. Their collaboration with NVIDIA Omniverse significantly shortens robot development cycles. EPS in Q1 was 0.78 yuan, up 1014% year-over-year, with AI vision business beginning to contribute real profits. However, this stock is much more volatile than large-cap stocks, easily affected by market sentiment, suitable for swing trading but with strict stop-loss controls.

On the US side, industrial automation giants like Rockwell Automation and Teradyne, which are profitable and have clear application scenarios, perform relatively strongly. Startups like Symbotic and Intuitive Surgical are more volatile; Intuitive Surgical, a leader in surgical robots, has fallen 22.65% YTD.

The logic for selecting robotics stocks isn’t complicated. First, look at the market demand—TrendForce estimates that by 2027, the global humanoid robot market will exceed $2 billion, with a CAGR of 154% from 2024 to 2027—that’s the direction. Focus on companies developing humanoid robots or entering related supply chains.

Second, examine R&D investment. The robotics industry evolves rapidly; if a company’s technological innovation can’t keep up, it risks being eliminated. Check if the company’s cash flow continuously allocates to R&D, and whether their capital expenditure (CFI) over the past five years has remained high or increased—these are signals of a focus on innovation.

Of course, investing in robotics stocks carries risks. The pace of technological iteration is fast, so close attention to R&D capabilities is necessary. Different countries’ government policies vary in support, and regulatory changes can impact development. The widespread adoption of robots will affect labor markets, prompting policy adjustments. Investors need to manage positions flexibly.

But honestly, this sector represents the future of technology, with enormous growth potential. If luck is on your side, you might find stocks that multiply tenfold or even a hundredfold. This is a critical period of industry transition—by thoroughly researching individual stocks’ fundamentals and understanding the industry chain logic, there are still many opportunities.