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Investing.com -- The robotics revolution is creating significant opportunities for semiconductor companies specializing in the processors that serve as the "brains" of these advanced machines, according to a recent Bernstein analysis of the robotics chip market.
As industrial and humanoid robotics emerge as prominent technological frontiers for 2025 and beyond, the demand for specialized system-on-chip (SoC) processors is accelerating. These chips function as both the "brain" (handling perception and planning) and "cerebellum" (controlling motion) in various robot types, from industrial applications to humanoid models.
The market remains fragmented due to diverse use cases and varying specifications, creating opportunities for established semiconductor giants and specialized chip designers alike. Bernstein identifies two companies as particularly well-positioned in this evolving sector:
1. NVIDIA
NVIDIA has established itself as the predominant provider of "brain" processors used in flagship humanoid robot models. The company’s chips are favored by leading robot manufacturers for their superior computing power and flexibility to support diverse applications. Beyond hardware, NVIDIA offers a robust development ecosystem for humanoid robots, including virtual environments for simulation, developer toolchains, operating systems, and various algorithms. This comprehensive approach gives NVIDIA a significant advantage as the robotics market continues to mature.
In recent developments, Nvidia secured a deal to supply chips to OpenAI for its AI models. Financial firm Jefferies also raised its price target on the company, citing a strong order outlook for its Blackwell and Rubin product families through 2026.
Horizon has adopted what Bernstein describes as a pragmatic approach to the robotics processor market. The company is effectively repurposing its existing advanced driver-assistance system (ADAS) chips for service robots like vacuum cleaners and lawn mowers. Looking ahead, Horizon’s chips designed for high-tier smart driving applications are well-suited to serve as edge AI processors for entry-level humanoid robots, offering cost-effective, low-power options for robot manufacturers. This strategy allows Horizon to track industry progress closely while maintaining financial discipline, ensuring sufficient investment in its core smart driving SoC business.
The robotics processor market remains in early stages, particularly for humanoid applications where commercial use cases and processor requirements are still evolving. However, as the sector develops, companies with expertise in smart driving SoCs hold unique advantages, as these technologies share significant overlap with robotics requirements.
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