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| By Michael A. Robinson |
I remember the start of my fascination with America’s “robotics revolution” as though it were yesterday.
And considering this happened 44 years ago, that says a lot about the field of robotics — and my memory.
At the time, I was a reporter with The Detroit News covering the auto industry. I went to a local factory and saw some of the first robots that the industry’s “Big 3” — General Motors (GM), Ford (F) and Stellantis (STLA) — were tapping to improve quality control and compete with Japanese manufacturers.
It was all exciting, cutting-edge tech that I was convinced would find wide application throughout U.S. manufacturing.
Sure enough, Mordor Intelligence projects the manufacturing robotics sector will soon be valued at $90 billion.
What I failed to foresee, however, was that a technology device pioneered by Benjamin Franklin nearly 260 years earlier could play a key role in the rise of this sector.
You see, almost out of nowhere, a novel electric motor created by Franklin is catching on among robotics engineers …
And today, I’ll reveal a way to play the robotics sector with a leader that’s using this motor to accelerate its growth …
An Impactful Invention
My visit to the automotive factory back in 1980 led to an exclusive article titled “Lasers Will Help Light Way for GM.”
I detailed how GM was starting to use sophisticated robots to help boost the quality and efficiency of automobile production.
Funny enough, more than 40 years later, articles about these types of technologies are still being written about.
Earlier this month, Christopher Mims of The Wall Street Journal wrote an article titled “Electric Motors Are About to Get a Major Upgrade Thanks to Benjamin Franklin.”
I mentioned Franklin a bit earlier. That’s because according to the Journal, scientists and engineers are creating modern versions of Franklin’s “electrostatic motor.”
Franklin’s electrostatic motor uses alternating positive and negative charges — the same kind that make your socks stick together after they come out of the dryer — to spin an axle.
And the motor doesn’t rely on a flow of current like conventional electric motors.
The devices have potentially huge advantages over regular motors. They’re up to 80% more efficient and could lead to more efficient air-conditioning systems, factories, logistics hubs, data centers and surveillance drones.
They could even enable new kinds of control and precision in robots, where the motors could function similarly to the muscles in our bodies.
That’s why I’m focused on a leader when it comes to robotics manufacturing …
Introducing Teradyne
That leader is Teradyne (TER). This Massachusetts-based company designs automated test equipment and also operates a thriving robotics business.
Founded by two guys who were classmates at MIT, Teradyne pioneered the field of automatic testing for defects in the 1960s.
Until then, critical parts and components had to be checked for quality by hand …
But thanks to Teradyne, machines could automatically run tests on various electronics.
Teradyne has its hand in the semiconductor chip sector and even works with electric vehicles. However, it’s also a robotics juggernaut …
Teradyne aims to disrupt manufacturing processes through the use of robots.
It has two divisions — Mobile Industrial Robots and Universal Robots — that empower businesses to optimize their manufacturing. The platforms improve product quality as well as worker productivity and safety.
In the logistics industry, internal transportation and material handling play a fundamental role. And through its Mobile Industrial Robots (MiR) division, Teradyne can optimize these workflows.
Essentially, the company offers robots that can tow carts or lift and transport shelves or pallets.
Its MiR600 bot moves pallets up to about 1,300 pounds. And its MiR1200 Pallet Jack can move up to 2,600 pounds. (More on this device in just a bit.)
To be clear, MiR wasn’t always a part of Teradyne.
In 2018, Teradyne acquired MiR, a Danish company, for $148 million, becoming a leading provider of industrial robots in the process.
As for its other division …
Robots That Collaborate
In Teradyne’s Universal Robots division, the focus isn’t just on robots completing tasks, it’s also about them collaborating with each other.
Teradyne’s collaborative robots can be put to work for things like palletizing, assembly, machine tending, dispensing, finishing, material handling and removal and quality inspection. The company offers a line of half a dozen “cobots,” some of which you can see here:
Like its MiR division, Teradyne’s Universal Robots sector came from an acquisition. In 2015, the company acquired Universal Robots for $272 million.
Today, 75,000 of its collaborative robots are in use worldwide, including by Ford, Stellantis, L’Oreal (LRLCY), Autodesk (ADSK) and Sanofi (SNY).
And as is the case with nearly every company these days, Teradyne’s robotic solutions aren’t complete without the use of AI …
Working with Nvidia
Part of what makes Teradyne’s robots so collaborative is the use of AI.
Specifically, the company has an AI Accelerator which enables its robots to use advanced decision making through computer vision and experience-enhanced motion capabilities derived from training models.
Earlier, you learned about its MiR1200 Pallet Jack, which can move heavy objects.
This machine comes equipped with AI, using three-dimensional vision to identify, pick up and deliver pallets with unprecedented precision, even in dynamic and complex environments.
Notably, to incorporate AI into its machines, Teradyne is working with the clear leader in this fast-growing industry. I’m referring to Nvidia (NVDA).
Earlier this year, Teradyne announced that it integrated Nvidia accelerated computing into its robots for faster planning — up to 50x to 80x faster — and greater efficiency.
All signs point to Teradyne being a solid investment. This stock has done well over the past five years, more than doubling in value.
Based on my forecast, I believe it can double its earnings by the end of the decade. And as earnings grow, stock prices do, too.
The robotics revolution may have started decades ago. But rest assured, we can still find ways to profit from it for years to come.
Best,
Michael A. Robinson
P.S. AI is clearly a thread I’m following for my readers. But as you can tell, I’ve been around long enough to look ahead, too.
That’s why I recently presented on the concept of “Beyond AI.” I urge you to check it out here.
