Rockwell to deploy edge-based generative AI for industrial teams

MILWAUKEE - Rockwell Automation, Inc. (NYSE:ROK) announced Thursday it will integrate NVIDIA Nemotron Nano, a small language model (SLM), into its FactoryTalk Design Studio and other product workflows, bringing generative AI capabilities directly to industrial edge environments. The industrial automation giant, currently valued at $42.49 billion, has seen its stock surge 40% over the past year, approaching its 52-week high of $398.20. According to InvestingPro data, ROK’s RSI indicates the stock is in overbought territory while trading at a high P/E ratio of 49.31.

The collaboration with NVIDIA leverages the open-source Nemotron-Nano-9B-v2 model and NVIDIA NeMo to create an edge-based AI solution specifically designed for industrial settings. The model is optimized to operate in environments with limited space and power compared to traditional data centers.

Rockwell’s implementation is designed to work across design, development, production and maintenance workflows, functioning on HMI panels, appliances, desktop IDEs, and server or private cloud environments. A key feature is its ability to support both edge and air-gapped deployments, where offline operation and data security are critical requirements.

"Industrial automation demands AI that works reliably at the edge and in secure environments," said Tony Carrara, FactoryTalk Design Studio business manager at Rockwell Automation. "By fine-tuning the open NVIDIA Nemotron model with FactoryTalk Design Studio data, we’re creating solutions that can be deployed anywhere."

Joey Conway, senior director of generative AI software for enterprise at NVIDIA, noted that small language models like NVIDIA Nemotron Nano "bring real-time intelligence to where decisions are made—from factory floors to power grids." Rockwell’s financial foundation remains solid with InvestingPro showing liquid assets exceeding short-term obligations and an impressive dividend history—maintaining payments for 55 consecutive years and raising dividends for 16 straight years. Investors seeking deeper analysis can access the comprehensive Pro Research Report, available for ROK and 1,400+ other US equities.

According to the press release, early evaluations indicate improvements in reasoning, predictability and responsiveness compared to other SLMs.

The company plans to showcase this technology at Automation Fair 2025, scheduled for November 17-20 in Chicago.

In other recent news, Rockwell Automation reported impressive financial results for the fourth quarter of fiscal year 2025. The company exceeded analyst expectations with an adjusted earnings per share of $3.34, surpassing the forecasted $2.94. Additionally, Rockwell Automation reported revenue of $2.32 billion, beating the anticipated $2.21 billion. These results have led to positive analyst reactions. Jefferies raised its price target for Rockwell Automation to $450, citing a strong margin expansion of approximately 300 basis points over the past year. Oppenheimer also increased its price target to $391 following the company’s strong fourth-quarter results, maintaining an Outperform rating. Both firms highlighted Rockwell’s margin expansion as a key factor in their upgraded outlooks. These developments reflect a positive sentiment towards Rockwell Automation’s financial health and future prospects.

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