As semiconductor stocks slump, one AI-adjacent sector is thriving – and these are the stocks to buy there

The Rise of Robotics as an Investment Theme

According to a note published by Bespoke Investment Group on July 16, 2026, interest in the robotics sector is expanding rapidly. Data indicates that Google search volume for robotics and related components has risen exponentially over the past year. This trend is supported by tangible industrial activity; Japanese machine orders for industrial robots grew by 24.5% over the last year, marking one of the fastest increases on record. Market participants are currently evaluating two distinct categories within this space: companies that produce actual robotics or automation hardware, and picks-and-shovels firms that supply the essential components, software, and systems required for those machines to function.

Key Players in Automation and Robotics

Investors seeking exposure to the sector are looking at companies ranging from industrial giants to specialized technology firms. Bespoke Investment Group identifies several leaders in the field based on market capitalization: * Robotics & Automation Basket: Includes Alphabet (GOOGL) for its Waymo robotaxi and AI research; Amazon (AMZN), which operates over one million warehouse robots; Tesla (TSLA), currently developing the Optimus humanoid robot; and Intuitive Surgical (ISRG), which manufactures da Vinci surgical systems. * Picks & Shovels Basket: Includes Nvidia (NVDA) for robotics compute and software; AMD (AMD) for compute chips; and Texas Instruments (TXN), which provides chips for factory automation and motor control. Other notable firms identified by market research include Rockwell Automation (ROK), which has seen organic sales growth of 9% year-over-year. Despite facing inflationary pressures, Rockwell recently authorized an additional $1 billion for share repurchases. Similarly, Cognex Corp. (CGNX) has experienced revenue momentum through its machine vision technology, with sales climbing 24% year-over-year in the most recent quarter.

For more on this story, see Tech Stocks Plunge: Global Sell-Off Driven by AI Concerns and Chip Slump.

Navigating Market Volatility

While robotics is viewed as a growth area, the sector is not immune to broader economic challenges. Teradyne Inc. (TER), a firm that bridges the gap between semiconductor testing and robotics, recently experienced a share price slump despite posting strong Q1 2026 results. The company reported revenue increases of 87% year-over-year to $1.3 billion, but management provided cautious guidance, leading investors to scrutinize the firm’s reliance on a small number of hyperscaler customers. Analysts remain generally optimistic about the potential for robotics to diversify industrial portfolios. PwC anticipates that industrial manufacturers will more than double their usage of automation by 2030, suggesting that the current investment cycle may be in its early stages.

This follows our earlier report, Apple Hits New All-Time High Amid AI Stock Slump.

Context: The Semiconductor Foundation

The current pivot toward robotics occurs against the backdrop of a cooling semiconductor market. Modern semiconductor chips, which serve as the “brains” for robotic systems, are complex components containing tens of billions of transistors. The manufacturing of these chips is a highly sophisticated process involving lithography and plasma etching to create patterns on silicon wafers. As the industry grapples with the physical limits of shrinking transistors—a trend historically governed by Moore’s Law—manufacturers have shifted toward 3D layering techniques. By shifting focus toward the broader automation ecosystem, investors are attempting to capitalize on the AI evolution while managing the risks associated with the high-valuation tech darlings that have dominated the market in recent years.