Robots are moving from science projects to real factory muscle, just as tight labor markets and higher costs keep pressure on businesses. Japan’s services sector has now expanded for five straight months despite worker shortages, which underlines how automation and physical AI are becoming practical fixes rather than future ideas. This article highlights three leading automation stocks from our screener that aim to turn that shift into investable potential.
The three stocks below are a sample of the automation leaders surfaced by this theme. The full screen pulled out another 90 companies with equally strong stories that are not covered in this article.
If you want to go beyond the short list and identify which robots and physical AI plays best fit your risk profile, head straight to the Robotics and Automation Stocks screener.
Beijing Geekplus Technology (SEHK:2590)
Beijing Geekplus Technology builds and deploys warehouse robots that move shelves, totes, and pallets, supported by software that manages and optimizes entire fulfillment workflows. The business generated about CN¥3.4 billion from robotics solutions and RaaS services, and the stock is valued at roughly HK$8.1 billion.
Beijing Geekplus Technology gives direct exposure to the physical AI push inside warehouses, where retailers and logistics groups are under pressure to automate picking and sorting with fleets of AMRs tied into warehouse software. The scale of future multi site rollouts, and the impact on profitability, hinges on one unresolved pressure inside those deployments.
The scale question sits right there, so dig into the DCF valuation analysis for Beijing Geekplus Technology to see how those rollout assumptions compare with the current HK$8.1b tag.
ON Semiconductor (ON)
ON Semiconductor builds chips that help machines see, sense, and control power. This makes it a direct supplier into factory automation, robotics, and AI-heavy infrastructure, even though much of its activity still supports broader auto and industrial uses.
ON Semiconductor generated about US$3.2b from its Power Solutions Group, US$2.2b from the Analog & Mixed-Signal Group, and US$900 million from the Intelligent Sensing Group that serves machine vision and robotic perception, and the stock is valued at roughly US$28.3b.
Where Beijing Geekplus focuses on physical robots on the warehouse floor, ON Semiconductor sits deeper in the stack, supplying the sensing and power chips that let those machines see, decide, and move efficiently when labor constraints bite.
"The company's investments in silicon carbide, vertical GaN and the Embedded Power Platform are now tied to a much larger AI data center opportunity, with management lifting its 2030 server and AI data center market estimate from about US$12b to nearly US$50b and targeting AI data center revenue growth at least 10 percentage points faster than the market, which could materially influence long term revenue and margin expansion."
What happens to margins and cash generation if a single pressure on how that higher value mix scales into robotics and automation shifts direction?
If that turning point on mix intrigues you, read the full narrative for ON Semiconductor to see how ON Semiconductor's AI, auto, and factory demand could be decoupling beneath the surface.
Harmonic Drive Systems (TSE:6324)
Harmonic Drive Systems supplies precision speed reducers and mechatronics used in robot joints, semiconductor tools, and automated equipment, giving it a direct link to the robotics and automation theme. The business generated about ¥36.9b in Japan, ¥17.8b in Europe, ¥12.5b in North America, and ¥3.8b in China, and is valued at roughly ¥466.8b.
Harmonic Drive Systems is a pure play on the hardware inside industrial robots, with precision gearheads and actuators serving automation demand across Japan, Europe, North America, and China. Forecast double digit earnings and revenue growth sit alongside a rich P/S multiple and financing risks that could quickly reshape how much of that automation upside reaches shareholders if a single funding pressure emerges.
That funding hinge is exactly where Harmonic Drive Systems could surprise, so read the 1 key reward and 1 important major warning sign and see how the risk reward balance really looks.
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