The advancement of artificial intelligence (AI) has made the development of humanoid robotics feasible, potentially creating a market estimated to be worth $38 billion by 2035.
The internet was a revolutionary innovation that opened up new markets and opportunities, and AI is now playing a similar transformative role. While AI models that perform tasks like answering questions and making calculations have garnered significant attention, leading companies are now beginning to focus on humanoid robotics.
Humanoid robotics, once a science fiction fantasy featured in movies, may become a reality in everyday life within the next decade. According to estimates by Goldman Sachs analysts, the global humanoid robotics market could reach $38 billion by 2035, significantly increasing from previous projections, highlighting the growing momentum in this field.
For investors, speculative start-ups in humanoid robotics might not be the optimal choice. Instead, established technology firms with profitable operations providing cash flow for investing in robotics present a more prudent opportunity.
One AI stock well-positioned for success in this sector is Nvidia. Known for its AI chip-making capabilities, Nvidia has established itself as a leader in AI’s initial stages. The company’s accelerator chips have become the standard for training AI models. However, as demonstrated by DeepSeek, the need for large quantities of such chips may decrease over time. Therefore, Nvidia, which relies heavily on AI data center spending, must continue to evolve and seek new opportunities. The company has shown interest in robotics, with CEO Jensen Huang expressing a vision where Nvidia’s AI software and hardware are widely used. Nvidia’s open-source software platform allows robotics developers to integrate with Nvidia models and computing resources, and the company has made strategic investments, including in humanoid robotics developer Figure. If successful, Nvidia’s strategy beyond the chip market could be crucial in sustaining growth past the current data center surge.
Meta Platforms, primarily recognized for its apps like Facebook, Instagram, WhatsApp, and Threads, is also advancing in the AI domain. With guidance from CEO Mark Zuckerberg, Meta has been incorporating AI into its core advertising operations and has developed an AI model now used by roughly 600 million monthly active users. The company is exploring new hardware, such as headsets and smart glasses, partly in response to the Apple and Alphabet’s stronghold on the smartphone ecosystem. Humanoid robotics is seen as a potential groundbreaking step in consumer technology, reminiscent of past innovations like the smartphone. Meta plans to invest significantly in consumer robots operating on the Llama AI model, leveraging its robust core business to support these efforts. Given Zuckerberg’s track record, Meta is expected to be a significant player in the robotics market.
Finally, Tesla, known for its electric vehicles, could be a contentious stock in this area. Although currently focused on automotive production, CEO Elon Musk sees a future in AI, including self-driving technology and humanoid robotics, as major technological opportunities. Tesla’s efforts include launching an autonomous vehicle fleet and its Tesla Optimus humanoid robot, with prototypes in operation. Musk envisions a future market of up to 10 billion humanoid robots by 2040, which presents a multitrillion-dollar opportunity. However, Tesla must contend with Musk’s history of ambitious predictions and inconsistent delivery timelines, as well as challenges within its core business. Despite these uncertainties, Tesla’s potential rewards remain substantial if it successfully meets its goals.
Randi Zuckerberg, a former Facebook executive and sister of Meta Platforms CEO Mark Zuckerberg, serves on the board of The Motley Fool, as does Suzanne Frey, an executive at Alphabet. The Motley Fool holds positions in and endorses Alphabet, Apple, Goldman Sachs Group, Meta Platforms, Nvidia, and Tesla.
