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Maybe it’s just my perception, but it feels as if innovation is truly accelerating. In just the last two years, we’ve experienced the integration of seemingly magical artificial intelligence into everyday life, major breakthroughs in quantum computing, and now, the emergence of humanoid robotics on the commercial stage.
AI and quantum computing have already proven to be exceptionally lucrative trading opportunities, with related stocks surging in value. I believe humanoid robotics could be the next major breakout trend, offering investors similar, if not greater, long-term upside.
Momentum is building fast. Humanoid robot demonstrations are becoming increasingly impressive, actual robot costs are dropping, and just this week, Nvidia unveiled its latest breakthrough: GR00T N1, the “World’s First Open Humanoid Robot Foundation Model.”
As this trend gains traction, it’s only a matter of time before Wall Street catches on. In this report, we’ll explore four stocks, Nvidia (NVDA), SoftBank Group (SFTBY), the Global X Robotics & AI ETF (BOTZ) and Tesla (TSLA), that are well-positioned to capitalize on the humanoid robotics revolution
Image Source: Zacks Investment Research
Growth Forecasts in the Humanoid Robotics Industry
According to a new report from HTF Market Intelligence, the global humanoid robot market is projected to surge from $2.4 billion measured in 2023 to nearly $114 billion by 2033, growing at a compound annual rate of more than 40%. This explosive growth is expected to be fueled by rising demand in healthcare, caregiving, and industrial automation, especially as labor shortages and aging populations drive adoption.
One of the most exciting developments is the rapid growth of bipedal humanoid robots. While wheeled robots currently dominate the market, the biped segment, which more closely mimics human movement, is expected to be the fastest-growing category through 2028, expanding at a CAGR of over 54%.
With falling hardware costs, advancing AI capabilities, and increasing real-world applications, humanoid robotics is no longer speculative, it’s a market on the verge of exponential growth.
Stock Market Opportunities in Robotics
Quite suddenly the humanoid robotics industry is an investable trend, and some of the world’s most important tech companies are already leading the charge.
Tesla is making waves with its Optimus robot, designed to perform repetitive or dangerous tasks. CEO Elon Musk envisions a future where humanoid robots will eventually surpass Tesla’s car business in value. While the company received criticism for the robots being only semi-autonomous during the major unveil, where they were serving drinks and carrying on conversations, I think it actually identified some opportunities. Robots that are remotely controlled still offer tremendous usability and can speed up real-time implementation.