Robotics Picks and Shovels
Saurabh Arora@isaurabharora
−3.4%
since Sep 30
The idea
I think robotics is heading for its ChatGPT moment, but as a five-to-ten year build-out rather than a single breakout. Rather than pick the winning robot maker, I own the suppliers every one of them needs: motion and actuation, vision and sensing, chips and compute, connectors and test gear, and design software. It is spread across nineteen names with a small cash reserve to add on weak days, and I plan to hold through the cycle rather than trade the headlines.
What it owns
- Every robot needs motors, bearings, and precision movement parts, and these companies sell them to all the makers at once. · Rockwell AutomationIt sells the automation equipment factories deploy when adding robots, making it a classic picks-and-shovels play on industrial adoption., NovantaIt makes the precision motion components, lasers and optics that go directly into robots, serving as an early signal of robot production demand., Parker HannifinIt makes motion control systems, hydraulics and actuators that enable robot arms and machinery to move and perform work., Regal RexnordIt supplies the motors and gearing that power robot movement, positioned to benefit as industrial motion demand grows with robot adoption., RBC BearingsIt manufactures precision bearings that enable smooth movement in robot joints, essential to every mechanical automation system.25%
- A robot that acts in the real world has to see it first, so cameras, lidar, and sensors are bought by every builder. · CognexIt leads in machine vision systems that give robots the ability to see and interpret their environment, selling to nearly all major robot builders., Teledyne TechnologiesIt supplies industrial imaging sensors and cameras that enable robots to perceive their surroundings across manufacturing and automation applications., Zebra TechnologiesIt sells scanning and vision systems for warehouses, where robots are deploying first and generating early demand signals., AmbarellaIt makes low-power chips that process camera data directly on robots, a specialized component for next-generation autonomous systems., OusterIt makes lidar sensors that help robots map and navigate their environment, the most speculative component in the sensing layer.23%
- The AI brains of every robot run on processors and analog chips these companies supply. · NVIDIAIt supplies the processors and software that run AI models inside every robot, making it the core infrastructure play for the entire automation build-out., Analog DevicesIt makes analog chips that convert real-world signals into data robot brains can process, a critical layer in every autonomous system., Texas InstrumentsIt supplies the analog and power management chips that populate every robot's circuit boards, offering broad exposure to industrial automation demand., onsemiIt makes power management and image sensing chips that robots and autonomous machines depend on for core functionality.21%
- Wiring, connectors, and test equipment are the unglamorous parts no robot ships without. · TeradyneIt tests the chips going into robots and owns a collaborative robot business, offering a two-sided exposure to chip demand and cobot production., AmphenolIt manufactures connectors that wire robot systems together, an essential component every robot builder must source., TE ConnectivityIt supplies sensors, connectors and wiring harnesses that form the backbone of robot construction, winning on volume as robot production scales.16%
- Robots are designed and trained in software long before they're built, and these tools collect fees either way. · PTCIt sells design and lifecycle software engineers use to build robots and factories, capturing early demand as new robot products enter development., SynopsysIt provides chip design and physics simulation tools used to create robot processors and train autonomous machines before production.8%
- Cash7%