Shares in consumer robotics producer iRobot Corporation (IRBT) soared 73.85% on Wednesday on reports of support for the U.S. domestic robotics industry by the Trump administration.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
According to Politico, the White House plans to issue an executive order next year to support the robotics industry, even as Commerce Secretary Howard Lutnick has been meeting industry leaders to discuss ways to accelerate the industry’s growth.
The Trump administration, which has made it its focal point of policy to revive America’s nuclear energy lead, boost the domestic semiconductor industry, and bolster artificial intelligence companies, appears ready to extend the same to the robotics industry.
China’s Robotics Industry Overheats
This comes at a time when Chinese robotics firms such as UBTECH Robotics (HK:9880) and Unitree Robotics have continued to make inroads in robotics development. Chinese authorities even recently warned that the industry was at risk of overheating as over 150 Chinese companies jostle to make humanoid robots.
An executive order from the Trump administration could provide critical support for American robotics firms such as iRobot and Richtech Robotics (RR) in terms of subsidies, tax incentives, and funding for research and development.
IRBT Stock Plunges 56% from January Level
Such a move could prove significant for iRobot, which, over the years, has struggled to retain investor confidence. Since the start of the year, IRBT stock has plummeted over 56% despite Wednesday’s rally. The company’s shares also fell about 4% during early trading on Thursday.
As a consumer robotics manufacturer, iRobot is known for its robotic vacuum cleaners, including the popular Roomba series. It also makes products such as floor mopping devices and advanced cleaning solutions that incorporate artificial intelligence and connectivity features.
iRobot Sees Falling Revenue and Profit Pressure
However, the company is facing stiff competition and continues to battle pressure on its profitability. During its recent Q3 2025 results, iRobot’s revenue fell by about 25% year-over-year to $145.8 million.
The results, which fell short of investor expectations, were impacted by market headwinds, production delays, and shipping disruptions. iRobot is also in discussion with its main Chinese factory partner, PICEA Robotic, on ways to fix its $161.5 million debt to the latter, including the possibility of selling parts of the business.
Is IRBT a Good Stock to Buy Now?
TipRanks’ AI analysts mostly hold Underperform ratings on iRobot’s shares, with the rest being Neutral.
OpenAI-4o model has a 38 out of 100 score on IRBT, which is an Underperform rating. This comes with an average IRBT price target of $1.50, which represents almost 56% downside risk.
