Top Asian Automation and Robotics Stocks to Watch in 2026, According to Bernstein

The Asian automation and robotics sector is poised for a significant rebound in 2026, according to recent analysis from Bernstein.

Despite challenges in 2025, including concerns about U.S. tariffs, currency fluctuations, and broader macroeconomic headwinds, several key players are positioned to benefit from the anticipated global factory automation cyclical recovery.

Bernstein’s research highlights four standout companies in the sector that deserve investor attention as the industry prepares for an upturn.

These companies offer exposure to various segments within automation and robotics, from factory automation to emerging technologies like humanoid robots and LiDAR systems.

1. KEYENCE: Despite weak stock performance in 2025, Bernstein considers this high-quality name to be the most misunderstood in the sector.

The company’s fundamentals remain unchanged, with continued new product launches throughout the year.

The stock’s de-rating and lowered Street expectations stemmed primarily from concerns about U.S. tariffs, currency fluctuations, and macroeconomic factors affecting Japanese exporters.

As Japan’s largest factory automation company with products exported exclusively from Japan, KEYENCE was disproportionately impacted.

Bernstein expects a key catalyst for re-rating in 2026 will be the company’s return to double-digit growth, supported by the global factory automation cyclical recovery anticipated in the December quarter.

In a recent update, Bernstein reiterated its Outperform rating on Keyence, maintaining a price target of JPY81,000.

2. SMC: The company faced challenges in 2025 due to a slower-than-expected cyclical recovery outside China. SMC also experienced operating deleverage as aggressive capacity expansion further depressed utilization rates.

While topline recovery alongside the global cyclical upturn is widely anticipated, Bernstein believes the Street remains overly conservative on margin expansion.

This expansion should naturally follow increasing sales as aggressive capacity expansion concludes this year. Bernstein expects a meaningful re-rating from current trough levels as SMC begins to show margin expansion in FY3/2027.

3. SHUANGHUAN: As a global leader in gears and reducers, Shuanghuan brings comprehensive expertise in gear technology with a strong record in winning head-to-head competition.

The company’s growth is increasingly driven by non-humanoid robots, such as robotic vacuums and industrial robots. Bernstein believes humanoid robots will serve as a key driver for long-term growth.

With the company’s valuation closely tied to the humanoid theme, Bernstein expects Shuanghuan’s share price could be driven by related events in 2026.

4. HESAI: This global frontrunner in "laser eyes" technology is benefiting from the intelligent vehicle boom. Bernstein expects emerging robotics applications to drive the company’s long-term growth, while profitability should improve through economies of scale.

Hesai’s revenue is projected to grow at a 47% CAGR from 2024 to 2027, with operating profit margin improving from -10% to 16%.

While not widely regarded as a robotics play in the capital market, Bernstein believes Hesai shows good potential in the robotics sector.