Rockwell Automation Teams Up With NVIDIA to Supercharge Industrial AI (ROK)

139

Rockwell Automation Inc. (ROK) has announced an expansion of its collaboration with NVIDIA (NVDA) to accelerate the development of safer and smarter industrial AI mobile robots in manufacturing, aimed at enhancing performance and efficiency for customers.

The collaboration builds upon their previous partnership in March 2024, where the companies worked together to accelerate a next-generation industrial architecture. Rockwell Automation aims to revolutionize the industry by designing the factory of the future, simplifying the digitization of industrial processes for automation customers.

ROK intends to integrate NVIDIA Omniverse Cloud APIs with its Emulate3D digital twin application, facilitating faster and more predictive factory analysis, including operations and simulation.

With NVIDIA joining the Rockwell Automation PartnerNetwork, customers can leverage their applications to enhance resilience, agility, and sustainability. This partnership combines Rockwell’s expertise in industrial AI with NVIDIA’s capabilities in AI and robotics, paving the way for an innovative new generation of autonomous mobile robots.

Rockwell Automation stands to benefit significantly from the expansion of its portfolio of hardware and software products, solutions, and services, as well as its investments in the cloud.

In the second quarter of fiscal 2024 (ended March 31, 2024), the company reported adjusted earnings per share (EPS) of $2.50, surpassing the Zacks Consensus Estimate of $2.15. Despite a 17% year-over-year decline in bottom line attributed to lower sales volume and operating margins in the Intelligent Devices and Software & Control segments, the improved performance of the Lifecycle Services segment partially offset these challenges.

Total revenues amounted to $2.13 billion, reflecting a 6.6% decline from the prior-year quarter, but exceeded the Zacks Consensus Estimate of $2.04 billion.

In terms of price performance, Rockwell Automation’s shares have experienced a 11.7% decrease over the past year, outperforming the industry’s decline of 13.2%.