Elite Automation Stocks To Own In October 2026

ASML just reported record €11.7b in quarterly sales and signalled that AI driven chip demand could exceed its production plans well into 2027 and 2028. That kind of backlog hints at years of hardware build out ahead, and every new factory or data center needs robots, sensors and automated systems to run efficiently. This article breaks down three robotics and automation stocks from our screener that are positioned to benefit from that trend.

The three stocks below are a starter pack from this robotics and automation theme, and the full screen surfaced 9 more companies with equally compelling narratives that are not covered in this article. To go deeper into the opportunity set, use the Robotics and Automation Stocks screener to identify, compare, and analyze the highest conviction ideas in the space.

ON Semiconductor (ON)

Overview: ON Semiconductor supplies intelligent sensing and power semiconductors that help enable robotics, factory automation, automotive systems, and AI data centers.

Operations: ON Semiconductor generated about $3.0b from Power Solutions Group, $2.2b from Analog & Mixed-Signal, and $0.9b from Intelligent Sensing.

Market Cap: $29.6b

ON Semiconductor matters for this robotics and automation theme because its sensing and power chips sit inside many of the systems turning physical AI from theory into installed hardware.

"Rapid secular growth in AI data center infrastructure, coupled with ON's unique position as a US-based provider of intelligent power semiconductors, is generating strong early revenue momentum. Ongoing adoption of power-dense, energy-efficient solutions is expected to support sustained revenue increases and potential long-term operating margin expansion."

What really moves the needle from here is how one emerging pressure on cost and efficiency plays out inside those AI centric projects.

That is where the full narrative for ON Semiconductor pulls everything together, mapping how cost pressures, AI demand and capital intensity could be converging for ON Semiconductor.

Xometry (XMTR)

Overview: Xometry runs an AI powered manufacturing marketplace that connects industrial buyers with suppliers to produce custom parts used in robotics and automation.

Operations: Xometry reports about $808 million in Internet Software & Services revenue, with roughly $677 million from the U.S. and $130 million from international markets.

Market Cap: $6.2b

Xometry matters for this robotics and automation theme because its instant quoting engine and manufacturing marketplace help robot builders move from prototypes to repeatable production runs without building their own factory footprint.

"Embedding Xometry’s AI driven manufacturability and pricing tools directly into Siemens Design Center and the wider Xcelerator suite, backed by the US$50 million equity stake, creates an avenue for high volume, in workflow quoting that is not yet reflected in guidance and could add incremental revenue and operating leverage once these users begin sourcing production at scale."

What investors really need to watch is how one emerging shift in higher margin, software driven revenue ultimately filters through to profitability.

That profitability tension is exactly where the full narrative for Xometry goes next, unpacking how Xometry’s marketplace scale, software mix and risk factors could reshape the earnings profile.

Arm Holdings (ARM)

Overview: Arm Holdings designs and licenses energy efficient CPU, GPU, and NPU chip architectures that power smartphones, cloud servers, cars, and increasingly robots and industrial edge devices.

Operations: Arm Holdings reports US$5.2b in Semiconductor Equipment and Services revenue, serving chipmakers and device manufacturers across global end markets.

Market Cap: US$272.6b

Arm Holdings matters for this robotics and automation theme because its low power CPUs, GPUs, and NPUs are the brains inside many robots and industrial edge devices that need local AI processing, tight control loops, and long operating life without constant cloud connectivity.

"The AGI CPU gives Arm a new revenue stream that is potentially much larger per unit than a royalty. That is the upside case, but also the source of controversy."

What really decides how much of the robotics supercycle Arm captures is how one unresolved shift in its customer relationships plays out.

That turning point for Arm’s customer economics is exactly what the full narrative for Arm Holdings unpacks, showing where royalty power, AI demand and risk could be decoupling next.

Seeking Alternatives Before Momentum Flies

Fresh ideas can be adopted quickly once momentum builds and prices start rising sharply. Scan under the radar for now, before the crowd catches on, and consider opportunities earlier in the cycle.

• Target resilient compounding potential with a curated set of firms screened as 32 resilient stocks with low risk scores so you are not focused only on momentum after it peaks.
• Look for potential mispriced quality by scanning 32 high quality undervalued stocks while these opportunities remain under the radar and before valuations move significantly.
• Consider structural demand themes by reviewing 16 nuclear energy infrastructure stocks before capital flows change and you are left responding to already extended moves.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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