Robotics and automation are back in the spotlight as Eurozone services activity stays robust, with August PMI readings holding near multi year highs, supported by tourism and external demand. Companies everywhere are under pressure to do more with tight labor markets and rising costs, which keeps automation firmly on the agenda. This article walks through 3 Robotics and Automation Stocks screener picks that capture this potential.

The stocks covered below are just a starting sample, and the full Robotics and Automation screen surfaced 34 more companies with equally compelling narratives that are not included in this article. If you want to identify and analyze the highest conviction robotics opportunities right now, head straight to the Robotics and Automation Stocks screener.

Kraken Robotics (TSXV:PNG)

Overview: Kraken Robotics is a marine technology company that builds underwater robotic equipment and KATFISH towed Synthetic Aperture Sonar systems that automate high resolution seabed mapping and inspection for defense and offshore energy clients. Around this robotics core, it also sells sonar and optical sensors, LiDAR solutions, deep sea SeaPower batteries and subsea survey services used across global maritime projects.

Operations: Kraken Robotics generates about CA$66 million from Products and CA$41 million from Services, with revenue mainly coming from the Asia Pacific region at CA$57 million, followed by North America at CA$26 million and EMEA at CA$20 million.

Market Cap: CA$1.8 billion

Kraken Robotics gives you direct exposure to the physical AI shift in the ocean, where automated KATFISH sonar systems, SeaPower batteries and subsea sensors help defense and offshore energy clients inspect critical infrastructure faster and with less manual labor. The recent Covelya acquisition and new battery capacity in Nova Scotia and Germany expand this robotics platform across navigation, positioning and communications, and are already tied to hundreds of millions of dollars in product orders. At the same time, Kraken reported a Q1 2026 net loss of CA$3.33 million and relies on large, sometimes lumpy defense and offshore contracts, so execution on integration and capacity utilization matters.

Kraken Robotics is wiring the seabed for automation at scale. Yet the real story sits in how its contracts, acquisitions and batteries stack up beneath the headlines. Get the full picture with the analysis report for Kraken Robotics

AeroVironment (AVAV)

Overview: AeroVironment is a defense technology company best known for its uncrewed aircraft systems, where small and medium UAVs, kinesis command and control software, and loitering munitions provide autonomous ISR, precision strike, and counter UAS capability, alongside a broader portfolio in space, cyber, and directed energy solutions.

Operations: AeroVironment generates about US$1.36b from Autonomous Systems and US$619 million from Space, Cyber and Directed Energy, with around US$1.42b of revenue from the United States and US$556 million from international customers.

Market Cap: US$8.1b

Investors looking at the robotics theme may find AeroVironment interesting because its uncrewed aircraft systems and autonomy software are already embedded in real world ISR, precision strike, and counter drone missions. Newer areas such as laser based counter UAS and space communications add additional exposure to related technologies. At the same time, the company reported losses and carries higher funding risk because all liabilities are financed through external borrowing, and margins have come under pressure after the BlueHalo acquisition. Execution on integrating acquisitions, scaling programs like AV Eagle in Europe, and demonstrating that AI driven swarm and teaming software can be monetized at scale are key factors that the market is still assessing.

AeroVironment’s autonomy story is accelerating, yet the real tension lies between growth programs, acquisition integration and funding risk. Get the full context in the analysis report for AeroVironment

Arm Holdings (ARM)

Overview: Arm Holdings designs the CPU, GPU and Neural Processing Unit IP that chipmakers license to power everything from smartphones to industrial controllers, with its low power compute subsystems widely used in robots, automation equipment and edge AI devices to handle perception, control and on device inferencing. Rather than manufacturing chips itself in most cases, Arm provides the underlying architecture, system IP and software tools that OEMs and cloud providers build on across smartphones, data centers, automotive and robotics.

Operations: Arm generates about US$5.16b from Semiconductor Equipment and Services, with this IP driven revenue coming from customers across the United States at US$1.77b, Japan at US$947 million, the PRC at US$865 million, Taiwan at US$725 million, Korea at US$440 million and other countries at US$412 million.

Market Cap: US$259.88b

Arm Holdings is worth a close look if you want exposure to the “picks and shovels” behind the robotics and automation push, since its energy efficient CPU, GPU and NPU designs sit inside many of the chips that run industrial robots, automation controllers and edge AI systems. The company combines high margin IP licensing with data center and AI demand, including an AGI CPU program that could increase its share of AI compute spending. The flip side is a very rich valuation, reliance on external borrowing and regulatory and customer conflict risk as Arm steps further into selling its own data center chips. For investors, the appeal is a high quality IP platform closely linked to physical AI, but with expectations already set high and execution now under the spotlight.

Arm Holdings is reshaping how robots and edge AI devices compute, yet the key question is how far this IP model can ride the AI wave before expectations run ahead of reality. Get the full story through the analyst forecasts for Arm Holdings

Seeking Fresh Alternatives Beyond Robotics?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.