The robotics investing thesis has significant long-ranging implications and it's just getting started, indicating there's plenty of fuel for long-term upside with the ARK Autonomous Technology & Robotics ETF (CBOE: ARKQ).
ARKQ captures the converging industrial and technology sectors, capitalizing from autonomous vehicles, robotics, 3D printing, and energy storage technologies. That wide mandate helps lever ARK to more than just self-driving cars, an important trait at a time of rapid robotics advancements.
Investors are always on the lookout for long-term growth opportunities. Now more than ever, it seems prescient to look beyond the immediate noise of the socioeconomic and political headlines and find investment opportunities for the long-haul. Emerging technologies may offer that growth, according to experts.
“ARK believes that during the next few years many types of robots will infiltrate construction sites, both on the ground and from the air. Komatsu’s drone technology, for example, works alongside its autonomous haul systems, providing images and maps of construction sites,” according to new research from ARKQ's issuer.
ARKQ is Accelerating the Tech Thesis
The robotics industry has proven its mettle amid the Covid-19 pandemic with machines taking the place of humans in order to stave off further infections from the virus. That said, a recent Robotics & Automation News article identified additional trends that can only further the expansion of the robotics industry–good news for ETFs like ARKQ.
Among the trends identified include companies teaming up, large acquisitions, scaling up inventory in retail, and reduced debates on the types of robots used for specific applications.
Robotics and artificial intelligence are making machines smarter and more capable than ever before, allowing robots to take on increasingly sophisticated tasks for faster and more accurate production. Declining computer chip costs and improving connectivity allows for virtually any object to connect to internet-enabled networks, effectively turning anything into a connected device. Drones are another area of opportunity for some ARKQ holdings.
“Drones should be able to collect job site data much more cost effectively than humans, with sensors that are less accurate and lighter than those that Trimble has mounted on Spot. Today, without Trimble equipment, Spot sells for a hefty $75,000, while Komatsu’s drones cost less than $5,000 upfront plus a monthly subscription of $1,800. ARK wonders if a fleet of drones that collects massive, albeit less accurate, data will be able to compete with ground-based robot systems,” according to ARK Invest.
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