Top 3 AI Stocks With Earnings Growth Over 38% To Watch

The Federal Reserve’s latest rate increase highlights how expensive human labor and borrowing have become, while spending on AI data centers and automation hardware keeps climbing. That mix is turning real world robotics into a practical way for companies to control costs and protect margins. This article walks through three leading automation stocks from our screener that are aligned with that trend and merit closer examination at this time.

The stocks covered below are only a small sample, and the full Robotics and Automation screen surfaced 92 more companies with equally compelling stories that are not unpacked in this article.

Head straight into the Robotics and Automation Stocks screener to identify, compare, and analyze the highest conviction automation plays that best match your own risk profile and time horizon.

AeroVironment leans directly into the robotics and automation theme through its uncrewed aircraft systems, using AI and autonomy to perform missions that are hard, risky, or expensive for humans, which makes the stock a useful test case for how physical AI is moving from concept to deployment.

AeroVironment develops uncrewed aircraft systems, loitering munitions, and autonomous platforms for defense and space clients. Autonomous Systems generates about US$1.4b of revenue, while Space, Cyber and Directed Energy contribute roughly US$584 million. The business is valued at around US$8.1b.

A $465 million EHEL award that Nawabi now describes as “the first-ever production contract for direct energy systems in U.S. military history.”

What happens to AeroVironment’s appeal if a single pressure on future defense automation demand shifts direction faster than management expects?

If that pressure does flip, read the full narrative for AeroVironment to see how AeroVironment’s contract pipeline, capital needs and automation edge could still accelerate or stall.

AXT supplies the semiconductor substrates that help give robots and autonomous systems “eyes,” with indium phosphide, gallium arsenide, and germanium wafers feeding lidar, near‑infrared sensors, and 3‑D sensing used across automation, data centers, and advanced optics.

AXT generates about US$126 million from semiconductor equipment and services, selling substrates that feed into a wide range of optical and sensing applications. The stock is valued at roughly US$4.5b.

Accelerating global demand for high-speed data center connectivity and AI infrastructure is driving increased adoption of indium phosphide substrates, where AXT is a top supplier with 40% share. As export permit headwinds ease, this pent-up demand is expected to produce sharp revenue growth and improved utilization of manufacturing capacity.

The long term appeal of AXT in robotics and automation may hinge on how one pressure in its supply chain reshapes pricing power.

That supply chain pressure is exactly why the full narrative for AXT digs into where AXT’s pricing power, automation exposure, and AI demand could be quietly accelerating.

Arm Holdings gives this robotics and automation screen a different angle, supplying the processor blueprints and AI engines that sit inside the chips powering robot controllers, industrial IoT gear, and edge AI modules. This sets up a key question about how it actually gets paid.

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 happens to Arm’s robotics appeal if one quiet shift in how partners share economics starts to squeeze those rich margins?

If that shift in economics is what worries you, the full narrative for Arm Holdings shows where Arm Holdings’ automation upside could still be building quietly beneath the headline debate.

Seeking Fresh Alternatives Before They Fly

Markets move fast and fresh ideas rarely stay under the radar for long. Scan these curated stock sets before the next breakout gathers momentum and prices start to move.

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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