Beyond science fiction: What investors need to know about humanoid robots
Feb. 15, 2025 7:00 AM ET
FBy: Clark Schultz, SA News Editor
The race to create AI-powered humanoid robots continues to accelerate as major tech and consumer companies eye investments and partnerships that could create business uses that could scale. Manufacturing, industrial automation, healthcare, education, entertainment and hospitality are just some of the fields where humanoid robots are expected to lower costs.
As an early innovator, Boston Dynamics plans to begin testing the all-electric Atlas with its parent company Hyundai and select partners in 20259. The initial focus will be on factory applications, particularly in automotive production, with the potential for expanded use cases as the robot's dexterity improves over time
Amazon (NASDAQ: AMZN) has been actively exploring the use of humanoid robots in its warehouse operations, marking a significant step in the integration of advanced robotics technology into its workforce. The e-commerce giant began testing Digit, a humanoid robot developed by Agility Robotics, at a robotics research and development facility just south of Seattle
Tesla (NASDAQ: TSLA) plans to begin selling Optimus robots to consumers in 2026 after producing several thousand this year. The company thinks its humanoid robot has the potential to transform certain types of household assistance and industrial work. The humanoid robot, standing at 5'8" tall and weighing about 125 pounds, is designed to perform various tasks in both industrial and domestic settings. On the business side, Musk thinks humanoid robots will be priced at $20K to $25K each. He sees sales of the Optimus robot hitting 500,000 units by 2027.
Chinese electric vehicle maker XPeng ( XPEV) has entered the robotics field with its humanoid robot named Iron. The robot was unveiled at XPeng's 2024 Tech Day event, showcasing the company's expansion beyond automotive technology. Iron is already operational on XPeng's ( XPEV) production lines, assisting in the assembly of the upcoming P7+ electric car.
Apple ( AAPL) was recently reported to be exploring the robot market to boost sales. "Apple is exploring both humanoid and non-humanoid robots for its future smart home ecosystem, and these products are still in the early proof-of-concept stage internally," TF International Securities' analyst Ming-Chi Kuo said on X. However, the launch of an Apple-branded robot is seen as unlikely to occur anytime soon.
Meta Platforms ( META) is also reportedly investing heavily in humanoid AI robots and is forming a new team within the Reality Labs division to develop it.
Other companies at the forefront of humanoid robot development include APL Robotics, Figure AI, Sanctuary AI, Apptronik, Engineered Arts, Hanson Robotics, Serve Robotics ( SERV), UBTech Robotics, and PAL Robotics. Meanwhile, automakers testing industrial and manufacturing use cases for humanoid robots include BMW (BMWYY), Hyundai ( OTCPK:HYMTF), Honda Motor ( HMC), and Mercedes-Benz ( OTCPK:MBGAF).
Humanoid robots are even starting to emerge in the Heartland. Walmart ( WMT) recently introduced its ADAM humanoid robot barista, at its store in Rockford, Illinois. The two-armed robot uses artificial intelligence to interact with customers, provide drink recommendations, and adapt to changes in the store environment.
Regarding the supply chain in the growing industry, Morgan Stanley highlighted that its research suggests China continues to show the most impressive progress in humanoid robotics where startups are benefitting from established supply chains, local adoption opportunities, and strong degrees of national government support.
On the AI hardware side, Nvidia (NASDAQ: NVDA) has introduced Jetson Thor, a next-generation compact computer specifically designed for humanoid robots, scheduled for launch in the first half of 2025. Built on NVIDIA's Blackwell architecture, Jetson Thor features 208 billion transistors and is capable of executing complex AI models necessary for advanced robotic functions
Companies producing semiconductors that are the core of the robot brain, including vision-focused semis, are seen as key opportunities for investors. Ambarella ( AMBA), Hong Kong-traded Horizon Robotics, Intel ( INTC), Mobileye ( MBLY), NVIDIA (NASDAQ: NVDA), and Qualcomm ( QCOM) are front and center in those areas. Also in the mix, the need for memory (DRAM, NAND, etc.) is seen as being even more relevant with further AI penetration into humanoid robotics. The list of potential beneficiaries includes Micron ( MU), SK hynix ( OTCPK:HXSCF), and Samsung Electronics ( OTCPK:SSNLF).
On the software side, Oracle ( ORCL) and Palantir ( PLTR) are seen as top contenders to capture significant humanoid robot business.
In terms of building out a humanoid robot, companies expected to attract attention include NSK, RBC Bearings ( RBC), Regal Rexnord ( RRX), Schaeffler ( OTCPK:SFFLY), Timken ( TKR), Shanghai-traded Hengli, Taiwan-traded Hiwin, Shanghai Beiti, Harmonic Drive System ( OTCPK:HSYDF), Taiwan-traded Hota, LeaderDrive, Nabtesco ( OTCPK:NCTKF), Regal Rexnord ( RRX), Shenzhen-traded Shuanghuan, Timken ( TKR), Shanghi-traded Zhongda Leader, Sensata ( ST), Shenzhen Inovance, and Nidec ( OTCPK:NJDCY).
Meanwhile, plenty of cameras and vision sensors are needed to deploy a humanoid robot fleet, which means potential upside for Analog Devices ( ADI), Hexagon ( OTCPK:HXGBF), Intel ( INTC), Keyence (6861-JP), On Semi ( ON), Hong Kong-traded Robosense, Sony Group ( SONY), TE Connectivity ( TEL), Teledyne Technologies ( TDY), and Shanghai-traded Will Semiconductor.
Finally, diversified automation specialists such as Hon Hai Precision / Foxconn (2317-TW), Honeywell ( HON), Rockwell Automation ( ROK), Siemens (SIE-DE) could play a key role.
Broad robotics-related ETFs: Vaneck Robotics ETF( IBOT), Global X Artificial Intelligence & Technology ETF ( AIQ), Global X Robotics & Artificial Intelligence ETF ( BOTZ), ROBO Global Robotics and Automation Index ETF( ROBO), First Trust Nasdaq Artificial Intelligence & Robotics ETF ( ROBT), WisdomTree Artificial Intelligence and Innovation Fund ( WTAI), Pacer BlueStar Engineering the Future ETF ( BULD), and the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Share ETF ( UBOT). |
