Within the last year, a major milestone was crossed in robotics agility. From Unitree Robotics to Boston Dynamics, humanoid robots have now outpaced many sci-fi movies featuring fictional CGI robotics.
Combined with AI agents that give life to agile robotic platforms, fiction is materializing in real time. Citi Global Insights analysts forecast the humanoid robotics industry to scale up to $7 trillion by 2050.
Elon Musk is even more optimistic, having noted mid-2024 that Optimus could eventually churn $10 trillion revenue. As with EVs, it is likely that China will have the bulk share in this growth. After all, China is already ahead of the game, having outpaced both Japan and Germany in industrial robot density, according to the International Federation of Robotics (IFR) report.
But outside of Tesla (NASDAQ:TSLA) which firms should investors consider for the AI and robotics boom?
1. Hyundai Motor (KS:005380) Co.
In 2021, Hyundai Motor Co (OTC:HYMTF) acquired Boston Dynamics from Japanese SoftBank (TYO:9984) for $880 million. To this day, Boston Dynamics remains the envy of the world when it comes to cutting edge humanoid robots.
In late March, Hyundai announced a $21 billion investment into the US between 2025 and 2028, boosting domestic supply chains and car manufacturing. Last week, the Trump admin amended the President’s previous executive order (EO) on 25% vehicle tariffs, enabling up to 15% credit if the cars are US-assembled.
In short, Hyundai is positioning to be a major player in robotics and EVs domestically, from supplying vehicles to Waymo to scaling up Boston Dynamics’ envelope-pushing work.
Year-to-date, Hyundai stock is down 1.2%, currently priced at $51 per share. According to WSJ, analyst ratings for Hyundai shares are overwhelmingly in the “buy” zone with 20 analysts, while zero analysts are recommending to sell.
2. Schaeffler AG
After merging with Vitesco in October 2024, German Schaeffler AG (ETR:SHA0) has become the leading provider of components in the advanced field of motion technology. Investors may have already seen this application with humanoid robot Digit, built by privately held Agility Robotics.
In early March, Agility Robotics and Schaeffler Group announced a strategic partnership, enabling investors to have exposure to Agility Robotics in turn.
So far, Agility Robotics seems to be at the forefront of deploying Mobile Manipulation Robots (MMRs) at scale. GXO Logistics, with over 1,000 warehouse sites, is the first to deploy Digit as a part of the emerging Robots-as-a-Service (RaaS) business model.
According to MarketsandMarkets, the RaaS sector is heading for a CAGR expansion of 17.4% between 2023 and 2028.
Operating alongside human workers, Digits will aid in repetitive tasks with more expansion plans. In addition to Digit, GXO Logistics is also looking into Apptronik’s Apollo humanoid robot, but that company is also privately held.
In April’s pre-close call for Q1 2025 earnings, scheduled for May 7th, Schaeffler AG reported €5.9 million in sales in Q4 ‘24, slightly lower than €6.1 million in Q1 ‘24. The company expects strong sales growth in e-mobility (electric drives, controls, mechatronics) and vehicle lifetime solutions (repair & maintenance).
3. ABB Ltd
Even robots are made by robots, more specifically by industrial robots. This is where Swiss-Swedish ABB (ST:ABB) Group comes in, holding 13.5% market share in the industrial robot market. The company is always expanding its list of partnerships, even sponsoring MassRobotics as the US-centric robotics innovation hub, annually supported by AMD (NASDAQ:AMD), Amazon (NASDAQ:AMZN) and other large companies.
Most recently in late April, the company announced its plan to split its ABB Robotics division as of Q2 2026, listing it as a separate company. During 2024, ABB Robotics contributed 7% to ABB Group’s revenue, delivering $2.3 billion. If the plan goes ahead with shareholder approval, they will receive “ABB Robotics” shares as dividend in-kind, proportional to their existing stock stake.
In the meantime, ABB’s robots are continuing to be deployed across a wide range of businesses. The fast food sector seems a particularly good match, in order to avoid arbitrary minimum-wage increases. BurgerBots is the most recent such restaurant, opened in Los Gatos, California.
If BurgerBots takes off, it is likely that global fast food chains will catch up with their much deeper pockets, and ABB Group will be in the middle of it.
Year-to-date, ABB stock is up 2.8% to current price of $55 per share. Per WSJ, the average ABB price target is $58.79, while the top is $78.78 per share. If the ABB Robotics split goes through, shareholders could see a substantial split premium not accounted for in the forecasting.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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