Allegro, Arm and Teradyne Among Robotics Stocks Gaining Focus

A sudden 10% drop in Nvidia shares following Jensen Huang’s resignation has shaken confidence in pure software and artificial intelligence chip stories, according to Yahoo Finance.

The Tech TL;DR:

• Physical automation stocks are gaining urgency as investors rotate away from pure software and AI chip bets.
• Allegro MicroSystems, Arm Holdings, and Teradyne form an initial screening of key robotics and hardware players.
• The broader screening yields additional automation companies for portfolio review.

That shift in market focus creates urgency for investors looking at physical automation. The rotation moves attention toward companies deploying robotics into real-world factories, warehouses, and infrastructure.

Three robotics and automation stocks form this first look from the screener. The full scan surfaced seven more companies with equally compelling stories.

Allegro MicroSystems plugs straight into the robotics theme through chips that let machines sense position and control motors, Yahoo Finance reported. The analyst consensus narrative on Simply Wall St highlights a shift in where its growth and mix come from.

“Industrial automation and data center markets are contributing more meaningfully to Allegro MicroSystems, with Industrial and Other sales of US$94 million in the latest quarter, data center reaching 17% of total sales and current sensors rising to 22% of data center revenue with gross margins in that business in the mid 50s,” said the analyst consensus narrative on Simply Wall St.

The key issue from here is how this business mix shift feeds through to pricing power and gross margin resilience. Allegro designs sensor and power integrated circuits that let robots, vehicles, and industrial equipment operate. It generates about US$1.0b of revenue and carries a market value close to US$6.0b.

Arm Holdings matters to this robotics screen because its low power CPU, GPU, and NPU designs form the brains inside many autonomous systems, Yahoo Finance reported. HedgeY, a member of the Simply Wall St Community, pointed out that an entirely different revenue source could drive the subsequent evolution of that function.

“The single most important catalyst is AGI CPU execution: if Arm ships successfully, secures enough supply, and converts early customer demand into real revenue, the stock can continue to command a premium,” HedgeY told the Simply Wall St Community.

What happens to future royalty mix and pricing power depends on how competitive pressures play out. That hinge point on royalties is unpacked in the full narrative for Arm Holdings.

Teradyne leans into physical automation through its Universal Robots and MiR units, while drawing most of its revenue from semiconductor test systems, Yahoo Finance reported. With a market value of about US$41.5b, it operates at a large scale in physical AI tools.

Simply Wall St’s analyst consensus overview emphasizes that Teradyne derives upwards of 60% of its income from artificial intelligence data center requirements, backed by a record-breaking second-quarter 2026 turnover near US$1.33b alongside projections for a more robust latter half of 2026.

“Teradyne continues to tie more than 60% of its revenue to AI-focused data center demand, with record Q2 2026 revenue of about US$1.33b and guidance for a stronger second half of 2026, which indicates ongoing AI-related test and automation orders that can support future revenue and earnings,” said the analyst consensus narrative on Simply Wall St.