Hot Tech Alert: 3 Digital Twin Stocks That Reflect Real-World Success

Digital twins – a virtual replica of a real-world object, place, thing, or other material item – are gaining traction in many market sectors. While digital twins evoke metaverse-style notions, and the term is certainly apt, we can also think of a digital twin as a means by which real-world systems and processes can be more easily measured, tested, and ultimately, after optimization, brought back into the material world.

For example, research shows that digital twins can help develop optimal inventory management systems that reduce costs while ensuring product availability, improve maintenance processes on the railways, and even model trading behavior on major stock exchanges. In other words, digital twins are just the next evolutionary step in using the virtual world to gain insights that are applicable to the physical world.

These digital twin stocks are at the forefront of this new and emerging technology – but their success is not tied to the virtual world alone.

Autodesk (ADSK)

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About Autodesk (NASDAQ:ADSK) is undoubtedly a blue-chip leader among digital twin stocks (if there are blue-chip equivalents for such a new and emerging technology). Autodesk’s biggest current contribution to the development of digital twins is in the architecture, engineering, and construction (AEC) space, which is already a core part of Autodesk’s operational perspective and provides an easy entry into the new development paradigm.

Autodesk’s digital twin platforms enable developers and architects to visualize and adjust planned infrastructure and buildings not only in terms of layout, materials, and structural strength. Instead, Autodesk simulates a range of behaviors and possibilities, including actual daily use, weather events, traffic impacts, and even safety incidents.

Digital twin technology in the AEC sector has already led to improved energy efficiency of facilities, improved maintenance throughout the lifecycle of a building and much more as the industry moves towards “Construction 4.0”, a state of improved technology and connectivity that is revolutionising the AEC sector through the use of AI, machine learning, the Internet of Things – and digital twins, as Autodesk shows.

Samsara (Internet of Things)

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As the company’s stock symbol suggests, Samsara (NYSE:Internet of Things), operational efforts are largely focused on the Internet of Things (IoT). But not only is IoT a key component of the broader digital twin evolution, but Samsara itself was an early participant in the emerging paradigm, as a 2022 article shows, when the term “digital twin” meant little to outsiders in the industry.

I’ve already looked at Samsara’s strengths in fleet and transportation connectivity, which enable improved logistics management and safety, but digital twins are another way to expand Samsara’s transportation-focused mission. The 2022 article mentioned above, written by a Samsara engineer, illustrates how digital twins can help improve fuel efficiency and preventative fleet maintenance to keep more vehicles on the road longer while operating more efficiently.

Samsara has a unique entry point into digital twin management: the company’s IoT infrastructure is a constant stream of data detailing performance and a multitude of variables across the spectrum of logistics and fleet management. This depth of data is key to modeling digital twins, making the new technical capabilities an easy spin-off from Samsara’s existing stack.

Rolls-Royce (RYCEY)

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Surprised to see Rolls-Royce (OTCQB:rycey.de – Translation – Linguee Dictionary) on a list of digital twin stocks? Although digital twins have some application in luxury cars, Rolls-Royce (the stock) is in fact no longer Rolls-Royce (the automobile) after a spin-off in 1998. Rather, Rolls-Royce is a high-end defense and aerospace manufacturer that produces advanced aircraft engines – using digital twins in the process.

As in the AEC industry, digital twins are helping Rolls-Royce better forecast maintenance and repair requirements rather than relying on crunching the numbers in a probabilistic simulation like the Monte Carlo method. By instead creating a digital twin of its engines in cyberspace and in the depths of existing performance and maintenance data, Rolls-Royce doesn’t have to overestimate edge cases as it does with probabilistic features. Instead, management can virtually create sophisticated stress tests to evaluate engine function under circumstances that are unlikely to ever occur in real life, and then from there work backwards through maintenance plans to determine optimal schedules.

Digital twins are just one of Rolls-Royce’s many unique developments in aerospace, which also include SWARM robots and 3D-printed engine components, making Rolls-Royce a unique overseas digital twin stock that can enhance your portfolio’s international diversification.

As of the date of publication, Jeremy Flint held no positions in any securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.