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For almost a century, American manufacturing revolutionized the world. From Edison’s first light bulb factory in New Jersey to Ford’s assembly line in Detroit, America has not only been a hardworking and dedicated nation, but it’s also changed how the world makes things.

During its golden years as a manufacturing powerhouse, the U.S. built products of unparalleled quality, products that the world clamored for.

That is, until trade policy and globalization changed everything:

• In 1965, manufacturing accounted for 53% of the economy.• By 1988, it only accounted for 39%.• And in 2004, it accounted for just 9%.

These days, the U.S. imports twice as much as it exports. And instead of strong industrial towns, we have a trade deficit that has grown to an unprecedented $800 billion on an annualized basis.

The good news is that although manufacturing may have largely left the U.S. some time ago, ingenuity didn’t. And thanks to three trends powering one undervalued sector of the market, America will once again revolutionize manufacturing.

Factories will once again proudly say their goods are made in America, and the economy at large will profit handsomely.

As the BBC reports, “An almost perfect storm of factors is boosting American manufacturing.”

Why? It’s because three specific industries have reached technological breaking points. These industries are done offshoring and are now helping move factories out of China and back to the U.S. And it all has to do with robotics.

These are the three breaking points that are set to make you the most money.

The clock is ticking, so let’s not waste any time.

First up on my list...

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BREAKING POINT #1: INDUSTRIAL AUTOMATIONRobots are completely transforming manufacturing processes in our country and for one main reason:

Robots work for $1.14 an hour.

The average cost to operate and maintain an industrial robot is $10,000 per year. Given that a robot can operate 24/7, without breaks or vacations, that comes out to just over $1.14 an hour.

Consequently, businesses of all shapes and sizes are scrambling to outfit their warehouses with new lines of robotic employees.

Why pay a worker $15 an hour to do something when a robot can do the job for a fraction of the cost?

The economics are obvious.

And keep in mind that robots don’t need health insurance or expensive benefits. They don’t require sick leave, lunch breaks, or vacation time.

That displaced worker is now free to be trained to service those robots or take on another role at the company — one more suited to a human employee.

As counterintuitive as it may seem, research has shown that the more robots there are in operation, the lower the unemployment rate.

Automation is an all-around win. There’s no doubt about it; robots are taking the workforce by storm.

You may have heard of Boston Dynamics. It’s one of the world’s leading robotics engineering firms. Its robots are designed to be extremely mobile and capable of navigating all sorts of obstacles and any terrain imaginable.

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Its dog-like model, Spot, can do just about anything — from opening doors, to towing cars, to tidying up your kitchen.

Armed with these technologies, robots are able to do way more than ever before, even tasks that require a delicate touch.

They can now fold towels, change tires, and even mix drinks.

I don’t know anybody who can put together flat-pack furniture without at least a handful of swear words.

But researchers in Singapore have developed a robot that can put together a chair from IKEA in eight minutes and 55 seconds.

In many cases, robots are so sophisticated that they can perform tasks well beyond the capabilities of the most skilled humans.

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At a hospital in New York, a robot designed by Google is responsible for detecting lung cancer.

The robot has helped doctors detect 5% more cancer cases. It’s able to detect potential cancer lesions in patients that aren’t experiencing any symptoms and don’t have any history of cancer.

Robots in the workforce aren’t just speeding things up for us — they’re saving our lives.

And the smarter these robots get, the more things they’re capable of doing.

That brings us to another key development in robotics, something that’s actually pretty new in the engineering world.

It’s the second industry that’s poised to skyrocket. And it could be the most important modern development in robotics.

What am I talking about?

BREAKING POINT #2: ARTIFICIAL INTELLIGENCEA few years ago, Google acquired an artificial intelligence company called DeepMind.

The company created software capable of all sorts of data processing, from search engine optimization to playing computer games.

In order to demonstrate its prowess, Google challenged Ke Jie, the world champion Go player, to a game.

Though the founder of DeepMind, Demis Hassabis, said that Jie played “perfectly,” the computer won the challenge, 2-0.

Even social media giant Facebook has its own artificial intelligence lab.

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Its software is responsible for filtering out inappropriate content on the site as well as deciding what people, groups, or places should be recommended to you.

But believe it or not, artificial intelligence has even more practical applications.

As a matter of fact, you probably interact with artificial intelligence on a regular basis.

How did this highly advanced technology worm its way into your daily life?

In voice recognition systems in your virtual assistants, like Siri, Alexa, Google Home, or Cortana.

Systems like these all use artificial intelligence, which lets computers learn by themselves. And that means computers are now able to get smarter without any human intervention.

That’s why your phone can tell that you want to know what the weather is today, whether you ask, “How cold is it?” or “Do I need an umbrella today?” or “What’s the weather outside?”

Robots are getting smarter. And as they do, the types of jobs they can do will be virtually unlimited.

Because if you only learn one thing from my report today, make it this:

Anything we can do, robots can do better.

And our third industry on the docket today is a perfect example of that.

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BREAKING POINT #3: SELF-DRIVING VEHICLESTechnology has become so sophisticated that robots are now even able to drive cars... legally!

Yes, recent developments have given robots the ability to do something that even the smartest humans seem to have trouble with...

Follow the rules of the road.

Forty states across the U.S. already allow self-driving cars on public streets.

Because here’s the incredible thing: Robot drivers react faster than humans. They have 360-degree perception through a huge network of sensors. And they never get distracted, sleepy, or drunk.

And it’s not just cars...

Self-driving trucks are already making deliveries all over the country.

You can see here Uber’s self-driving truck making its very first delivery. Robotic truckers would never get tired, never need a break, and never get sick.

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But autonomous vehicles aren’t just transforming transportation. In fact, one of the most successful uses isn’t designed for the public eye at all.

Robotic military vehicles are revolutionizing the way we handle national defense.

The Navy asked for $550 million in 2020 to purchase a new fleet of robotic warships and submarines.

Imagine a future where we don’t have to send troops to battle to keep our country safe.

A future without death tolls... a future where we can finally know that our borders and our people are secure.

By 2024, the U.S. Navy hopes to buy at least seven new robotic submarines. They’ll cost more than $730 million.

And it’s clear to everyone involved that this technology would be well worth the investment.

So now you’ve seen a few of the different industries robotics is going to revolutionize.

We’ve reached a breaking point, and robots are now ready for the mainstream.

To that end, I’ve isolated three pioneering robotics stocks that have a pure ground floor.

These companies would be like getting in on Dell, Apple, and Microsoft back at the beginning of the computer revolution.

Let me tell you about them now…

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ROBOT STOCK NO. 1: ABB LTD. (NYSE: ABB)Technological pioneers usually aren’t dividend-payers — let alone reliable ones. But our first robot stock pick will put income in your pocket while helping you invest in the economy of the future.

ABB is a Swiss-Swedish robotics firm that specializes in industrial automation. It ranks as a top 300 Forbes company and is one of the largest engineering firms in the world with over 144,400 employees, operations in 140 countries, and annual revenue of over $27 billion.

The firm is found at the center of current developments in fields such as (but not limited to) clean energy, smart grids, microgrids (localized, independent grids), robotics, sustainable transport, and, of course, industrial automation.

In fact, its industrial automation unit accounts for the majority of its revenues and has maintained a steady, above-average growth rate of 5% in recent quarters.

Some of that unit’s more recent projects include a full electrification and automation package for the experimental carbon-free HYBRIT steel plant in Luleå, northern Sweden; power infrastructure for Europe’s largest battery factory; and a joint venture with Volvo to electrify the city of Gothenburg, Sweden’s streets for electric buses.

In other words, this company’s growth is driven by an automation segment that is investing in exactly the right technologies.

From a valuation standpoint, ABB is attractively priced. Trailing price-to-earnings (P/E) is 81.00 compared with competing industrial robotics firm KUKA at 160.05. The firm also boasts a respectable return on equity (ROE) of 7.18% compared with KUKA’s 1.02%.

The firm’s steady growth has made it a surprisingly reliable dividend-payer. It sports a 3.03% yield at the time of writing, and its dividend is paid quarterly.

Point blank, ABB is a global industrial and energy powerhouse operating in a wide range of long-term growth markets. It’s a solid position for automation-minded income investors.

We rate ABB Ltd. (NYSE: ABB) a “Buy” under $45. The risk level is “Low.”

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ROBOT STOCK NO. 2: NUANCE COMMUNICATIONS, INC. (NASDAQ: NUAN)

As we mentioned earlier, virtual assistants are some of the most ubiquitous examples of artificial intelligence in our lives today.

And the first virtual assistant to hit the mainstream was Apple’s Siri. Our second robot stock pick helped develop her…

Nuance Communications provides software that allows applications to decipher and respond to what a person is saying through both text and speech.

The company gained much of its early recognition after helping Apple launch its digital assistant Siri back in 2010 by providing the earliest voice recognition engine for the now iconic application.

Nuance has since broken its relationship with Apple, but the company remains a clear leader in the field of speech recognition and AI, particularly in enterprise and professional services.

Nuance was recently rated as a strong performer in the conversational computing market by Forrester — right alongside Amazon, Microsoft, and Google. Forrester has jointly ranked Nuance’s “Nina” AI platform as the No. 1 ranking virtual assistant for enterprise customer support.

The company’s product line includes a combination of speech recognition and virtual assistant services that support up to 80 different languages. Nuance’s speech recognition products are sold under the Dragon brand name and are marketed as transcription software.

This includes specific packages geared to the medical and legal communities looking to reduce transcription costs, but it also extends to individual users. In addition to recognizing and recording speech, Dragon allows users to create custom voice commands. Nuance also sells headsets that can be paired with its speech recognition software.

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The most exciting aspect of Nuance’s business, though, is its virtual customer assistant (VCA) Nina. Nina enables dialogue between consumers and brands, with the ability to understand complex questions and ask follow-ups when needed.

VCAs are computer programs that interact with customers at the first point of contact. Their job is to identify a customer’s needs and, ideally, address those needs without human intervention. This is about as close to a functioning, real-life Turing test as we can get at the moment.

Gartner’s research shows that 15% of all customer operations will integrate VCAs across their engagement channels by the end of 2021. That’s up from less than 2% in 2017.

The same research found that organizations reported a reduction of 70% of call, chat, and email inquiries after implementing a VCA. Gartner also reported increased customer satisfaction and 33% in savings per voice engagement.

Nuance provides self-service applications like Nina to over 6,500 organizations globally, including 75% of the Fortune 100.

The company can boast the following accolades:

• The eight largest handset makers and 10 largest automakers all use Nuance solutions in their products.

• Its products have been shipped in more than 5 billion mobile phones and 110 million voice-enabled vehicles.

• Nuance transcribes more than 7 billion lines of medical data every year.

• More than 10,000 hospitals and 150,000 doctors use the company’s healthcare solutions.

• Nuance has more than 4,300 patents and patent applications, an R&D team 2,000 strong, and one of the world’s largest libraries of speech data.

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In addition to standard natural language processing, Nuance also provides products that capture and contextualize data from various documents, whether they are electronic or paper.

Essentially, the company improves administrative workflow, much in the way the stocking frame improved the workflow of the textile industry two centuries ago.

With a broad portfolio of services, Nuance easily ranks as one of the top stocks to follow during the early emergence of artificial intelligence.

*Editor’s Note: We closed our position on Nuance Communications Inc. (NASDAQ: NUAN) for a 230% gain on June 25, 2021! Although we exited this trade, Nuance is still on our radar. As always, you’ll immediately receive an urgent Trade Alert the moment another buying opportunity presents itself.

ROBOT STOCK NO. 3: KVH INDUSTRIES INC. (NASDAQ: KVHI)

Anyone who follows the robotics space knows that Boston Dynamics is a truly impressive company. If it weren’t for the fact that it’s a private company, it would be every investor’s dream.

Its iconic robotic dog, Spot, went on sale in 2020. And it marked a huge milestone for both the company and the robotics industry as a whole.

Boston Dynamics doesn’t have a stock for this event to boost, but we’ve identified one company that stands to see a huge windfall from robotics like Spot hitting the market.

You see, Dr. Marc Raibert, the founder and former CEO of Boston Dynamics, is known for inventing one specific type of technology.

He created the first self-balancing robots. The self-balancing tech is what allows the company’s dynamic humanoid robot, Atlas, to walk upright and for Spot to pick himself up from the ground.

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But here’s the kicker: Boston Dynamics doesn’t manufacture the component that allows the tech to function. That distinction goes to a niche group of technology companies, with KVH Industries leading the way...

In short, KVH makes a hyper-advanced gyroscope called an inertial measurement unit (IMU) that lets these robots steadily walk. This device essentially orients robots, self-driving cars, and other automated technology so they know which way is up.

And once Boston Dynamics starts mass-producing its robots for sale, its need for IMUs will skyrocket.

The result? KVH will see a massive increase in demand as the proliferation of robotics takes further hold.

And it doesn’t stop there...

This company’s tech is used in a lot of different devices.

It’s in cellphones, GPS devices, and all manner of robots.

KVH is unmatched in the quality and precision of its tech.

This has led to it making tactical navigation systems and satellite phones for the U.S. military for more than 25 years.

And once the military starts producing robots like Atlas for combat missions, its need for IMUs will increase drastically, as well.

With a market cap of less than $200 million, it wouldn’t take much to send this stock up by five times, 10 times, or even 25 times...

It’s only a matter of time before the company sees a major growth surge and the profits that will follow.

We rate KVH Industries Inc. (NASDAQ: KVHI) a “Buy” under $15. The risk level is “Medium.”

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