We just published the list of the 10 Best Robotics and Automation Stocks to buy that are on sale and Ouster, Inc. (NASDAQ:OUST) is ranked 8th on this list.
Robotics and automation have become increasingly important areas of investment as manufacturers, logistics operators, and businesses turn to intelligent systems to improve productivity. Yet the expansion of the industry has not translated into consistent stock-market gains for every company involved. Several prominent robotics and automation stocks have fallen more than 30% from their 52-week highs, raising questions about the gap between the industry's long-term potential and the financial performance of individual businesses. Access our meticulously compiled list of the 10 Most Profitable Stocks of the Past 5 Years to see which companies are generating the most profits.
However, it is significant for investors to note that the underlying demand for automation is continuing to expand. According to the International Federation of Robotics, factories worldwide installed more than 600,000 industrial robots in 2025, an increase of 11% from the previous year. The global operational stock reached approximately five million robots, while the United States overtook Japan to become the world's second-largest market for industrial robot installations. You can also take a look at the 10 Best Autonomous Vehicle Stocks To Buy Backed by Hedge Funds to see hedge funds' favorite robotics stocks. Autonomous vehicles are a specific kind of robots that are on wheels after all.
Ouster, Inc. (NASDAQ:OUST) made our list of the best robotics stocks that are on sale for two reasons. First, OUST shares declined more than 53.38%since hitting its 52-week high. Second, 31 hedge funds are bullish on the stock, making OUST a very popular stock in this space.
Ouster, Inc. (NASDAQ:OUST) offers exposure to an important part of the robotics industry without manufacturing the robots themselves. Its LiDAR sensors help autonomous machines understand their surroundings, making the technology relevant to industrial automation, warehouse operations, and intelligent transportation. The company's unified sensing and perception platform combines high-performance digital lidar, AI compute, cameras, sensor fusion and perception software, and cutting-edge AI models.
A significant development in Ouster's strategy was its February acquisition of Stereolabs, which expanded its portfolio into stereo cameras, AI vision, and perception software. The combination gives Ouster a broader offering for robotics developers that require multiple sensing technologies.
There is evidence of commercial traction as well, as the company reported that its revenue for fiscal Q2 increased 56% year over year to $55 million, while shipments exceeded 17,000 total sensors shipped. GAAP gross margin improved to 49%, up 400 bps year over year and up 600 bps sequentially, suggesting progress in the economics of its hardware business.
Nevertheless, Ouster reported a GAAP net loss of $18 million, which translates into an improvement of $2 million year over year. Its acquisition also means investors need to distinguish growth in the existing business from revenue added through Stereolabs. Keeping these dynamics in view, investors need to direct their attention to whether Ouster can turn its expanded sensing portfolio and rising shipment volumes into consistently positive earnings.
While we acknowledge the risk and potential of OUST as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than OUST that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock .
This article is originally published at Insider Monkey .
