2 Robotics Stocks You’ll Wish You Bought Sooner

NVIDIA CEO Jensen Hong has declared that the next generation of artificial intelligence is physical AI. This means AI with a physical body out in the real world. Now, we're in a time where everyone has been hyperfocused on software, but leaders like Jensen Hong, Elon Musk, and others, they're pointing out that the real wealth building opportunities are going to be in automation, hardware, and robotics. Uh so, today we're going to be breaking down two top robotic stocks to buy this week. Uh before we dive in though, do us a quick favor. Subscribe to the channel, hit the like button. It really helps the channel out with the algorithm. Now, Jose and I wanted to look at two very opposite ends of this industry. A high- growth small cap disruptor and an established industry player. Jose, you're starting us off with the small cap play. What do you have? >> Yeah, Rachel, I'm going to start off with Surf Robotics, uh ticker sv. And if you look under the hood, what they are trying to solve in the last mount delivery space is massive. They manufacture those autonomous sidewalk delivery robots that integrate directly with food delivery platforms like Uber Eats. If you check out their quarter 1, 2026 earnings report, revenue came in right around $3 million, which reflect a massive 578% year-over-year increase. But the real story here is the shift in their business model. Out of that three million top line, an entire third of it, about 1 million came from high margin software services. They aren't just a hardware company. They are building out a softwaredriven reoccurring revenue stream. They expanded their footprint to cover 44 cities and their recent acquisition of Diligent Robotics allow them to move their hardware directly into hospital logistics as well. Management also completely reaffirmed their fullear 2026 revenue target of roughly $26 million. If Last Mount Logistics continue its automation shift, getting it under $10 a share offers immense long-term upside. >> Yeah, Ser Robotics has certainly been witnessing uh impressive revenue growth to to to put it wildly. But I think the other thing we have to talk about is the cash burn, right? Obviously, this is a business that is focusing on growth. They're scaling rapidly and to that point their quarterly net loss widened to about $49 million. You know, we saw obviously that a miss from what analysts were targeting. Um about 800 of their overall uh robots are currently active daily. So I wonder how much runway do you think they have to hit their revenue targets for 2026 without diluting shareholders um or also seeing continued net losses? Yeah, Rachel, that's the core risk that investors have to weigh. They are running deep losses because scaling a hardware network is front-loaded with massive cost. But what makes me somewhat comfortable holding a small position here I if I wanted to enter into the stock is that management is actively shifting focus from just building more robots to improving utilization and revenue per robot. Like you mentioned, less than half of the robots are active right now, but their active robot count actually grew nearly 50% sequentially, and their daily supply are up significantly, too. Plus, they are sitting on a solid liquidity cushion with around $198 million in cash on the balance sheet, which gives them some time to fine-tune the operations. And the macro tailwinds here in the robotic space are real. >> Yeah, I mean, the cash cushion is really important. I think the other thing to talk about and this of course really speaks to adoption of serve robotics technology. They they have a really pretty heavy reliance on partners. So a huge driver for Serve is their commercial agreement to deploy up to 2,000 robots for Uber Eats. You know, I think the question if I'm taking the the bearish thesis here is what happens if Uber decides to diversify their delivery tech or they build their own robots in house. you know, is their entire value, speaking of serve, is that tied up in that one relationship? I'm just curious what how they're diversifying that that client base. >> Uh, and this is another point that bears like to bring up, but it does ignore one thing that this is how these commercial alliances are actually structured, right? Uber isn't just a client. They are a major strategic investor in SER. They also have strong technology partnerships like Nvidia. And because of the equity stake, Uber has this incentive to see Serve succeed rather than spending hundreds of millions of dollars competing against them. Plus, by acquiring Diligent Robotics, Serve is actively breaking out of the food delivery box. They are building a diversified automation platform so that they aren't relying on a single partner or delivery vertical in the long term. It does make the business model far more resilient than it looks on the surface. But let's flip to your pick, Rachel. who brought a completely dominant healthcare monopoly that is currently experiencing a rare market sell-off. What is that ticker Rachel? >> Yeah, it's my stock today is Intuitive Surgical, ticker ISRG. Currently trading around $430 a share. I mean, this is a company that has been the leader in uh surgical robotics for decades. Ever since their first uh robotic assisted surgical system, the Da Vinci robotic system, since their first system was approved more than 20 years ago, they have remained a leader in the space with a dominant market share. And we'll talk in a little bit about why the stock has been under so much pressure lately. But I'll say, I mean, this is in my opinion a business that really embodies what Elon Musk was talking about when he predicted that, you know, by 2030 there will be more autonomous robotic options outperforming human medical tasks than human surgeons on Earth. I'm not sure I fully take that view, but I do think we are continuing to see massive adoption of AI, machine learning, and autonomous robots within the health care space that partner directly as well with human surgeons. And intuitive surgical is one of the main companies making that a reality today. So, they manufacture the Da Vinci surgical system. This allows doctors to perform really complex, minimally invasive surgeries with absolute precision. They have thousands of systems installed worldwide. And these are very expensive systems. I mean, some of them can run to about 250 million per robotic system. Once a hospital invests to buy a Da Vinci platform, they have to train their entire surgical team on it. So, the switching costs are really, really, really significant. >> Yeah, Rachel, this is one of those stocks that to me just makes sense. I mean, they have that mo in technology. they have they're in the right market and then they have the tailwind of technology and the robotic side but the market maybe doesn't see it as one that makes sense like I do the stock has been very volatile over the last few months why do you think now is that optimal time to look at it Rachel >> yeah there's a few reasons I I will note medtech valuations as a whole have really been hit by a weak cycle and I mean we're seeing this in Intuitive Surgical's valuation they've fallen significantly from recent highs we're in a time where I think we're seeing some institutional money rotate out of healthcare and right into the big tech data centers. The investment is still there, but there is certainly that impact. Now, for me, the core growth story for Intuitive Surgical has always gone back to their razor and blades business model. So, you know, maybe at first glance, investors might assume that Intuitive Surgical makes most of their money from selling their multi-million dollar surgical robotic systems. That is actually not their largest source of revenue. uh where they make most of their revenue from is selling the disposable instruments and accessories that have to be replaced frequently. They only have a very limited life cycle for various surgeries before they have to be disposed of and replaced. Uh that is a huge part of Institute of Surgical's revenue base. The other part is contracts. They have long-term service contracts that they enter into with healthcare providers, hospitals that they sell these systems to and that's also really important to their revenue growth. You know, looking at some of the numbers, right? So, in Q1, they pulled in $2.8 billion in revenue. System sales actually only accounted for $650 million of that $2.8 billion revenue total. $1.7 billion came from instruments and accessories revenue. That was up more than 20% year-over-year. This also means that about 80% of their total revenue is completely recurring, uh, annuity-like, uh, if you will, from instruments and accessories, from service contracts. Um, this is something that's really important. One final thing I'll note, procedure volumes are growing at a very steady clip globally. They're actively rolling out their advanced Da Vinci 5 system which has a whole host of new AI integrations. So this is a really profitable cash generating business and they're trading at a massive discount. >> Yeah, Rachel, that reoccurring revenue from Instrument is insane. But we have to address kind of that weight loss drug trend. About a year or two ago, Wall Street seemed to have panicked that GOP1 medications would make people healthier and eliminate the need for certain surgeries, which hit intuitive stocks hard. Now that we have more data, has that threat completely cleared up, or is it still a headwind for the procedure volume? Yeah, I I do think this is an example of the market miscalculating that risk and a lot of this went back to concerns over uh the use of their systems in beriatric procedures which has historically been one key part of the business. They are diversified into a wide range of other procedure types. Um so yes, beriatric procedure growth did slow down but it really represents a very small percentage of their total global business. They are actively expanding into other areas. They have a really uh strong market footprint in uh minimally invasive thoracic uh gynecologic general surgery categories. Those are all expanding rapidly. They're also continuing to see growth from their ION platform. This is uh the one that's used specifically for minimally invasive lung biopsies. They're seeing mid- double-digit procedure volume growth there. So, what I would take away from this, you know, their overall clinical addressable market is expanding. They're continuing to go into new areas of medicine. Yes, there might be shifts in their markets uh from the continued GLP1 space, but I think the core growth engine is still very much intact. Thank you, Rachel. And that wraps up our two robotic stocks for this week. Whether you want to take a high upside micro cap bet on an autonomous delivery with Ser Robotics or grab a long-term compounding monopoly at a 30% discount with Intuitive Surgical. The physical AI trend is just getting started. Before you head out, make sure to hit the thumbs up and the subscribe button. Also, let us know in the comments below, do you own any of these companies right now? Take care and see you all next time.