3D Systems Corporation (NYSE:DDD) stock rose to as high as $69.41 last Tuesday amid takeover speculations and short covering. However, the stock plunged to $61.62 by Friday. Last week, Citigroup and RBC Capital Markets analysts said in separate research reports that a potential takeover of 3D Systems is unlikely due to its high valuation. Even if someone doesn’t buy the 3D printing company, it still has immense growth opportunity, says Alcaraz Equity Research.
3D Systems to help Intel and Google in robotics
Alcaraz says that the Rock Hill-based company stands to benefit from consumer robotics. Intel Corporation (NASDAQ:INTC) plans to launch a $1,600 Jimmy the Robot later this year. The chipmaker designed early prototypes of the robot using 3D printers. People who buy Jimmy the Robot can customize its looks with the help of 3D printers. Intel aims to make robots affordable and socially interactive to serve people better.
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Alcaraz Equity Research says, in the future, there would be several versions of robots that can perform multiple household tasks. Intel is likely to adopt app-based approach to consumer robotics. It will help people install different functional capabilities in their robots. Meanwhile, Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) is also interested in consumer robotics. The Internet giant has acquired about a dozen robotics companies, including Boston Dynamics, since last year. Alcaraz notes that consumer robots can become as ubiquitous as smartphones and smart TVs.
Intel and Google already collaborating with 3D Systems
3D Systems will be one of the biggest beneficiaries of the rise of consumer robotics, thanks to its dominant position in additive manufacturing. Intel is already using the Rock Hill-based company’s software to let people scan in 3D through the chipmaker’s RealSense technology. Google has already partnered with 3D Systems for its Project Ara. The search engine giant is likely to tap 3D Systems again to develop customizable and modular robots.
With its Phenix, 3D Systems has a lead in direct metal printing. Google and Intel’s robots are unlikely to be in pure plastic forms. So, they can turn to Phenix for metal 3D printing.