A ten percent drop in Nvidia shares following Jensen Huang’s resignation has shaken confidence in pure software and artificial intelligence chip stories, according to Simply Wall St. That sudden decline is pushing investor attention toward companies that put robotics into real-world factories, warehouses, and infrastructure.
The shift creates urgency for investors who do not want physical automation to rerate without them. Simply Wall St highlights three robotics and automation stocks from its screener as a first look at the field.
Allegro MicroSystems market mix
Through the silicon components that enable machines to monitor location and direct motors, Allegro MicroSystems connects directly to the robotics and automation trend. Simply Wall St’s consensus analyst commentary emphasizes the way this function is beginning to transform the origins of its growth and product balance.
“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,” according to the analyst consensus narrative on Simply Wall St.
The central question moving forward is the manner in which a subtle alteration in operational composition impacts pricing authority, gross margin strength, and upcoming cash flows.
Motion sensing and motor management are handled by sensor and power integrated circuits engineered by Allegro MicroSystems. It brings in roughly US$1.0b in integrated circuit revenue alongside a market capitalization near US$6.0b.
Arm Holdings execution catalysts
Arm Holdings secures its place on this robotics list because its energy-efficient CPU, GPU, and NPU architectures serve as the intelligence within numerous self-governing platforms. The next phase of that role could come from a very different revenue stream, according to HedgeY, an investor in the Simply Wall St community.
“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 Simply Wall St.
The trajectory of Arm Holdings’ subsequent royalty distribution and pricing strength relies significantly on the resolution of a specific, contested competitive friction.
That hinge point on royalties is exactly what the full narrative for Arm Holdings unpacks.
Teradyne infrastructure spending
Teradyne participates in the robotics and automation sector via its Universal Robots and MiR divisions, though the majority of its income originates from semiconductor and product testing apparatus. Valued at approximately US$41.5b, the enterprise operates as a major participant in physical artificial intelligence hardware.
Teradyne sells automated test equipment for chips, electronics, and communications gear, alongside a growing line of collaborative arms and mobile robots.
Market evaluation consensus reports compiled by Simply Wall St emphasize the extent to which this portfolio is presently connected to artificial intelligence infrastructure investments and industrial automation purchase requests.
“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,” according to the analyst consensus narrative on Simply Wall St.
Automation stocks rise as Nvidia confidence shifts
What drove the recent shift toward physical automation stocks?
The sudden drop in Nvidia shares following Jensen Huang’s resignation shook confidence in pure software and artificial intelligence chip stories, pushing attention toward companies deploying robotics in physical environments.
What proportion of Teradyne’s revenue ties to AI-focused data center demand?
Teradyne ties more than 60% of its revenue to AI-focused data center demand, backed by record Q2 2026 revenue of about US$1.33b.
How much revenue does Allegro MicroSystems generate from integrated circuits?
Allegro MicroSystems generates about US$1.0b of revenue from integrated circuits and maintains a market value close to US$6.0b.
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