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A groundbreaking UBS report projects the humanoid robot market will explode from 2 million units by 2035 to 300 million by 2050, creating a massive $1.4 trillion to $1.7 trillion addressable market. This technological revolution addresses critical labor shortages and aging populations worldwide, positioning three key stocks as primary beneficiaries.
Robotics Stock #1: Tesla
Tesla (TSLA) leads the charge with its Optimus humanoid robot, designed to revolutionize manufacturing and household applications. Its vertical integration and AI expertise position Tesla perfectly for mass production of humanoid robots.
Tesla transformed from selling 32,000 electric vehicles in its early days to almost 2 million units in 2024, becoming the world’s largest electric automaker for most of that period. However, CEO Elon Musk has dramatically shifted the company’s focus from its original 2006 mission of transitioning the world to sustainable transportation.
Musk now positions Tesla as “the world’s biggest robotics company,” emphasizing autonomous vehicles and humanoid robots over traditional EVs. Musk has in recent years unveiled the Cybercab robotaxi and Robovan prototypes.
Tesla plans to invest $10 billion in autonomous technology and produce 5,000 Optimus humanoid robots in 2025. Musk boldly predicts Optimus will become “the biggest product of all time by far.”
Tesla bulls view robotics as crucial for future growth, while skeptics argue the company has abandoned its sustainable transportation mission for uncertain ventures, questioning whether robotics will deliver compared to focusing on affordable EVs with massive market potential.
Out of the 41 analysts covering TSLA stock, 14 recommend “Strong Buy,” two recommend “Moderate Buy,” 15 recommend “Hold,” and 10 recommend “Strong Sell.” The average TSLA stock price target is $292, below the current price near $345. Investors should note that UBS does not have a “Buy” rating on Tesla but does acknowledge the company is poised to benefit from the rise of robotics.
Robotics Stock #2: Taiwan Semi
Taiwan Semiconductor (TSM) emerges as a critical enabler, manufacturing the advanced chips that power robot brains. As humanoids require sophisticated processing capabilities, TSM’s cutting-edge semiconductor technology becomes indispensable.
Taiwan Semiconductor has secured a pivotal role in the emerging humanoid robotics market, with CEO C.C. Wei confirming the company will supply necessary chips for Tesla’s Optimus robot project.
Tesla plans to scale aggressively from tens of thousands of units by 2026 to 500,000 units annually by 2027, creating substantial chip demand for TSMC. The broader market opportunity appears massive, with UBS projecting humanoid robot demand will surge from 15,000 units in 2025 to 86 million by 2050. This growth could expand the related semiconductor market from $21 million to $177 billion over the same period.
TSMC benefits from Taiwan’s comprehensive technology ecosystem, including AI capabilities, precision manufacturing, and component expertise in sensors, microcontrollers, and cameras essential for humanoid robots. Its advanced manufacturing capabilities and scale position it as a preferred supplier for U.S. and global supply chains.
As humanoid robotics becomes a major technology product cycle driven by AI advancements and labor replacement needs, TSMC stands to capture significant value from increasingly sophisticated chip requirements.
Out of the 11 analysts covering TSM stock, eight recommend “Strong Buy,” two recommend “Moderate Buy,” and one recommends “Hold.” The average target price for the chip stock is $233, indicating 12% upside potential from current levels.
Robotics Stock #3: Nvidia
Nvidia (NVDA) provides the AI foundation through its powerful processors that enable robot learning and decision-making. The company’s dominance in artificial intelligence hardware makes it crucial for the development of humanoid robots.
UBS analysts estimate humanoid robots could generate $400 billion in additional automation revenue by 2050, with industrial applications leading adoption before expanding into service sectors and households.
Nvidia is spearheading the development of general-purpose humanoid robots designed to quickly adapt to human-centric environments, addressing labor shortages and automating tedious tasks across various industries, including manufacturing and healthcare. Building these sophisticated machines requires overcoming complex engineering challenges, including human-like perception, dexterity, mobility, and whole-body control.
Nvidia’s comprehensive three-computer solution addresses these challenges, as it has the tech to train models, simulate and test robot functions, and handle robot run-time computing.
The centerpiece is NVIDIA Isaac GR00T, the world’s first open foundation model for humanoid robot reasoning. This platform includes specialized blueprints for data generation (GR00T-Dreams), dexterous manipulation (GR00T-Dexterity), mobility navigation, whole-body control, and AI-based perception with long-term memory capabilities.
By combining real-world data with synthetic simulation environments, Nvidia enables robots to learn diverse skills efficiently. This integrated approach accelerates the development of humanoid robotics, allowing the robots to perform complex tasks while adapting to changing environments and various embodiments.
Out of the 44 analysts covering NVDA stock, 37 recommend “Strong Buy,” three recommend “Moderate Buy,” three recommend “Hold,” and one recommends “Strong Sell.” The average target price for NVDA stock is just below $175.
