The internet was a groundbreaking innovation that created new markets and opportunities. Today, artificial intelligence (AI) is doing the same. AI models that can answer questions or perform calculations have captured most people's attention, but some of the world's most innovative companies are starting to look ahead to humanoid robotics.
A few decades ago, humanoid robotics was a science fiction concept depicted in movies. At this point, people could see humanoid robots in their daily lives within the next 10 years. Goldman Sachs analysts estimate the global humanoid robotics market will explode to $38 billion by 2035. That's up sixfold from their previous projection, which speaks to the momentum building in robotics.
Speculative start-ups might not be a wise choice when investing in humanoid robotics. Instead, consider technology heavyweights with profitable existing businesses, throwing off the cash flow to invest in robotics.
Here are three AI stocks poised to win this race over the next decade and beyond.
1. Nvidia
AI chipmaker Nvidia (NVDA +0.87%) has been arguably the most successful company in AI's early years. Its accelerator chips became the industry standard for training AI models. However, as DeepSeek recently demonstrated, there may come a time when companies no longer need to buy such large amounts of chips. It's essential that Nvidia, which now depends on AI data center spending for most of its business, evolve and explore new market opportunities.
NASDAQ: NVDA
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Fortunately, Nvidia isn't idle. The company has proactively demonstrated a keen interest in robotics. CEO Jensen Huang has been vocal about his vision for a future where Nvidia-powered AI software and hardware are commonplace. Nvidia has an open-source software platform on which robotics developers can build and tie into Nvidia-powered models and computing resources. Nvidia has also invested in strategic companies, including humanoid robotics developer Figure. If successful, Nvidia's foresight to go beyond the chip level could prove pivotal in ensuring it sustains growth beyond the current data center boom.
2. Meta Platforms
Social media giant Meta Platforms (META 0.82%) is known primarily for its family of apps (Facebook, Instagram, WhatsApp, Threads) and 3.35 billion daily active users, but the company's quietly pushing to build its future in AI. CEO Mark Zuckerberg, Meta's co-founder, has guided the company toward artificial intelligence for several years. The company integrated AI technology into its core advertising business and developed and open-sourced an AI model that has grown to roughly 600 million monthly active users. It is pushing beyond the smartphone with new forms of hardware, like headsets and smart glasses.
NASDAQ: META
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Why? I'd argue it's primarily due to Apple and Alphabet's duopoly on the smartphone ecosystem. Their app stores wield remarkable power over apps, even Meta's. Zuckerberg has openly expressed his frustration about it. Humanoid robotics could be arguably the most significant leap forward in consumer technology since the smartphone. Recent reports indicate that the company plans to invest heavily in developing consumer robots that perform tasks and operate on Llama's AI model. Few companies can afford to swing hard on humanoid robotics like Meta can because it has such a strong core business backing it up. Considering Zuckerberg's strong track record, I'd be surprised if Meta weren't a major player in the robotics market when all the dust settles.
3. Tesla
Electric vehicle maker Tesla (TSLA 5.46%) could be the most polarizing of the three stocks. Although it is primarily an automotive manufacturer today, its ambitions go far beyond that. CEO Elon Musk has pegged the company's long-term prospects mainly on AI, including self-driving vehicle technology and humanoid robotics, predicting they could be the world's largest technology opportunities. Tesla is going after both; the company plans to launch an autonomous vehicle fleet and ride-hailing service, beginning this year. Tesla's humanoid robot, Tesla Optimus, is progressing, with prototypes consistently operating throughout the company's facilities.
NASDAQ: TSLA
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Musk has predicted that the world could have as many as 10 billion humanoid robots by 2040, a multitrillion-dollar opportunity at his target price of $20,000 per bot. It seems wise to target both markets since self-driving AI technology theoretically seems like a logical crossover between vehicles operating themselves and robots doing the same. The risk in Tesla stock is Musk's known history of bold promises and spotty delivery. Full self-driving technology has already been in the works for years, and oftentimes, promises only come to fruition well after stated timelines have passed. Tesla's slumping core business is also a legitimate concern. However, the upside is undeniable if Musk and the company deliver.
