BOTZ: A Strong Cocktail Of Robotics And AI For The Long Term

Chetan Woodun profile picture
Chetan Woodun
7.46K Followers

Summary

  • With its exposure to high valuation IT and industrial stocks, BOTZ has suffered from considerable downside from the start of this year.
  • Its exposure to NVIDIA has been particularly detrimental in terms of volatility.
  • Looking at profitability, its top holdings exhibit good metrics, but valuations are still high in a market where the value strategy prevails.
  • Also, the latest developments at Google show that AI is progressing rapidly and robotics combined with intelligent software is likely to play a deeper role in manufacturing.
  • Wait for a slight dip before investing.

Asian factory worker woman hold tablet and maintenance with check part of robotic machine in workplace area

Narongrit Sritana/iStock via Getty Images

With its main holding NVIDIA (NVDA) down by 46% since the start of 2022, the Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ) has also been impacted by volatility. It is down

This article was written by

Chetan Woodun profile picture
7.46K Followers
As a tech-focused industry Research Analyst, my aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I like to write around themes like automated supply chains, Generative AI, telcos Capex, the deflationary nature of software, semiconductors, etc and I am often contrarian. I have also covered biotechs.I have also been an entrepreneur in real estate ( a mediocre one), a business owner, and a farmer, and dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I help needy families by providing sponsored work and contributing peer reviews and opinions for enterprise tech.I have been investing for the last 25 years, initially in mutual or indexed funds before later opting for individual stocks. Got a lot of experience in the 2008/2009 downturn when I lost a lot due mostly to wrong advice. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best analysts.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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