New Data Keep Us Bullish on This Robotics and Automation Play

When we initiated the Pro Portfolio’s position in the Global Robotics and Automation Index ETF (ROBO), we did so in a relatively small way with the intention of looking to scale in in due course. The timing of such action would be determined by a combination of supporting data points for the adoption of robotics and automation, the technical set up in ROBO shares and the market backdrop.

We’ve also discussed the factors that have us taking a more cautious approach near-term, and that is leading us to stay on the sidelines when it comes to adding additional ROBO shares.

For now.

We are increasingly encouraged about the adoption of robotics and automation by what we’ve heard so far during second-quarter earnings season. Building on that was the write-up in The New York Times last week about the usage of robots, including human shaped ones, in automotive manufacturing plants:

“Hyundai Motor is one of the companies pursuing robotics most aggressively. At the company’s factory about half an hour from Savannah, Ga., autonomous carts have largely replaced forklifts for moving materials around the plant. Four-legged robots that look like dogs search for flaws by peering under car bodies. Flat, wheeled robots the size of queen beds slide under Ioniq 5 or Ioniq 9 electric vehicles as they come off the assembly line, lift them from below and transport them to testing stations.

“In most car factories, workers drive the vehicles to testing. Being human, they occasionally drive into pillars and other objects. That’s not a problem with Hyundai’s transport robots, said Jerry Roach, a senior manager in charge of general assembly at the Georgia factory, which began producing cars in 2024.

“In 2021 Hyundai acquired Boston Dynamics, which is developing humanoid robots that the carmaker plans to use initially for arranging components in a specified order for humans to install in vehicles.

“That is the same basic task that the BMW robot, made by Figure AI, demonstrated in Spartanburg. Mercedes-Benz, which is testing robots made by Apptronik in Austin, Texas, also plans to use them for handling and sorting materials. Carmakers say they have trouble retaining workers to perform such basic tasks.“

Stepping back for a higher view, during the first half of 2026, industrial automation continues to drive robotics demand. Per data captured and published by The Association for Advancing Automation (better known as A3), here is how order growth in H1 2026 looked:

– Semiconductors, electronics, and photonics: +35% units

– Life sciences, pharmaceuticals, biomedical: +32% units

– Automotive components: +24% units

– Food and consumer goods: +17% units

– Plastics and rubber: +6% units

– All other industries: +6% units

Metals and metalworking: +3% units

As you can imagine, that keeps us and others busy bullish on investment dollars for robotics and automation as does the bonus depreciation under the One Big Beautiful Bill (OBBB). Covered automation assets under that bill include:

– Robotics: Industrial robots, collaborative robots (cobots), and robotic picking or palletizing systems.

– Automation Hardware: Automated assembly lines, computer numerical control (CNC) machinery, conveyor lines, and sortation systems.

– Supporting Infrastructure: Integrated IT infrastructure and machinery upgrades tied directly to production and distribution operations.

So What Are We Waiting For?

With those data points in hand, we are looking to expand our ROBO exposure but, similar to our comments on Netflix (NFLX), the current market mood is keeping us in a holding pattern. Another factor that is throttling any action on our part is the gap in the ROBO chart, which would be filled if the shares pull back to support between the $81-$82. Those are the 100-day and 50-day moving averages, respectively.

Should the market give back some of its recent gains, dragging down ROBO shares in the process, a successful test of that support level would be a signal to us that it’s time to pick up additional shares for the Portfolio.

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At the time of publication, TheStreet Pro was long NFLX and ROBO.