Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Robotics Is Real. The Discount Is Too

BY | ETF Database
06/25/2025 | 223 VIEWS
During our June 5th ROBO Global Webcast, we covered three key themes driving the robotics and AI investment landscape. The key trends included: accelerating M&A activity; global industrial reshoring and infrastructure buildout; and compelling valuation opportunities in established, innovative robotics companies trading at historic discounts.  These themes are embodied by the constituents of the ROBO Global Robotics and Automation Index (ROBO B-) and the ROBO Global Artificial Intelligence Index (THNQ C+). M&A AccelerationOn the M&A front, Ambarella AMBA shares jumped over 19% on June 24th on news of exploring a potential exit. The company represents an attractive target for firms seeking automotive and drone application expansion in computer vision. For reference, over 50% of ROBO constituents are small- and mid-caps, which are increasingly attractive partners or acquisitions to larger players. Both ROBO and THNQ include AMBA.Global Industrial Reshoring & Infrastructure BuildoutWe also covered global reshoring efforts, particularly across data centers and industrial sectors for sovereign independence. Since then, we’ve seen over $100B in semiconductor and data center commitments emerge, alongside new European collaborations from ROBO constituents. At NVIDIA’s Paris GTC conference, several key partnerships materialized: Schneider Electric (SBGSY) announced a collaboration with NVIDIA to develop AI-ready infrastructure. This collaboration will target power, cooling, and high-density rack systems for next-generation AI factories across Europe. SGBSY is included in ROBO.  Nebius Group (NBIS) delivered the first NVIDIA Blackwell general availability in Europe, offering B200 capacity on-demand through their self-service platform and NVIDIA DGX Cloud. NBIS is included in THNQ. Supermicro (SMCI) launched European support for their complete NVIDIA AI Factory Stack, expanding manufacturing capabilities across the region. SMCI is included in THNQ. Innovation & Valuation Opportunities in Established Robotics Companies Speaking of Europe, long-time ROBO member Hexagon (HXGBY) perfectly illustrates our third webcast theme. The company, which describes itself as one that “measures the world and shapes the future,” recently surprised the industry with a major announcement.  Known historically for precision measurement tools in industrial applications, the company unveiled its newest product: AEON, a wheeled humanoid robot.Catch the official launch:Sweden-based HXGBY is projected to generate over $6 billion in revenue and $1 billion in profit for 2025. The company’s three largest business segments include: manufacturing intelligence (36% of revenue), geosystems (29%) and asset life cycle intelligence (15%), with the majority of revenue from EMEA (~33%), followed by USA (~30%)  and Asia (~14%). When Market Fear Creates OpportunityDespite Hexagon’s success, global footprint, exposure to multiple industrial cycle opportunities, and their new humanoid robotics launch, the company trades at attractive valuations: 4.7x projected 2025 EV/Sales Just under 20x projected 2025 P/E ratio Currently at 10-year relative valuation lows HXGBY exemplifies just one of many publicly-traded robotics companies trading well below historical averages. These companies haven’t experienced the valuation hype-premium seen in private markets or artificial intelligence, creating significant opportunities.Sovereign AI's ImportanceOur research shows that current valuation discrepancies stem primarily from investor fears around tariffs and geopolitics, which have temporarily delayed several projects. However, the bigger picture shows accelerated commitments both in the U.S. and globally, as sovereign supply chains for energy and AI become increasingly critical. “Sovereign AI is an imperative – no company, industry or nation can outsource its intelligence,” stated NVIDIA CEO Jensen Huang earlier this month. This dynamic creates compelling entry points for investors in established robotics companies with proven business models and expanding AI capabilities. Catch the replay of the webinar, “The dynamic trends shaping robotics, AI, and healthcare” here. Looking for regular updates? Subscribe here for weekly insights on robotics, AI, and healthcare technology, delivered straight to your inbox. _ROBO is the underlying index for the ROBO Global Robotics & Automation ETF (ROBO), the L&G ROBO Global Robotics and Automation UCITS ETF (ROBO.LN), and the Global X ROBO Global Robotics & Automation ETF (ROBO.AU). _ THNQ is the underlying index for the ROBO Global Artificial Intelligence ETF (THNQ) and the L&G Artificial Intelligence UCITS ETF (AIAI). VettaFi is the index provider for the ROBO ETF and THNQ ETF, for which it receives an index licensing fee. However, the ROBO ETF and THNQ ETF are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of the ROBO ETF and THNQ ETF. For more news, information, and analysis, visit our Disruptive Technology Channel.

More Commentary

Bitcoin Miners Arent Budging as Prices Rise
BY | ETF Database
5:19 am ET 06/30/25 | 25 VIEWS
Ethereum ETFs Ride Bitcoins Coattails
BY | ETF Database
06/27/2025 | 150 VIEWS
Bullish Momentum Propelling This European ETF Even Higher
BY | ETF Database
06/27/2025 | 276 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.