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Globe and Mail
20-05-2025
- Business
- Globe and Mail
The Next Major Tech Stock Trend: Humanoid Robotics
Maybe it's just my perception, but it feels as if innovation is truly accelerating. In just the last two years, we've experienced the integration of seemingly magical artificial intelligence into everyday life, major breakthroughs in quantum computing, and now, the emergence of humanoid robotics on the commercial stage. AI and quantum computing have already proven to be exceptionally lucrative trading opportunities, with related stocks surging in value. I believe humanoid robotics could be the next major breakout trend, offering investors similar, if not greater, long-term upside. Momentum is building fast. Humanoid robot demonstrations are becoming increasingly impressive, actual robot costs are dropping, and just this week, Nvidia unveiled its latest breakthrough: GR00T N1, the 'World's First Open Humanoid Robot Foundation Model.' As this trend gains traction, it's only a matter of time before Wall Street catches on. In this report, we'll explore four stocks, Nvidia ( NVDA ), SoftBank Group ( SFTBY ), the Global X Robotics & AI ETF ( BOTZ ) and Tesla ( TSLA ), that are well-positioned to capitalize on the humanoid robotics revolution Growth Forecasts in the Humanoid Robotics Industry According to a new report from HTF Market Intelligence, the global humanoid robot market is projected to surge from $2.4 billion measured in 2023 to nearly $114 billion by 2033, growing at a compound annual rate of more than 40%. This explosive growth is expected to be fueled by rising demand in healthcare, caregiving, and industrial automation, especially as labor shortages and aging populations drive adoption. One of the most exciting developments is the rapid growth of bipedal humanoid robots. While wheeled robots currently dominate the market, the biped segment, which more closely mimics human movement, is expected to be the fastest-growing category through 2028, expanding at a CAGR of over 54%. With falling hardware costs, advancing AI capabilities, and increasing real-world applications, humanoid robotics is no longer speculative, it's a market on the verge of exponential growth. Stock Market Opportunities in Robotics Quite suddenly the humanoid robotics industry is an investable trend, and some of the world's most important tech companies are already leading the charge. Tesla is making waves with its Optimus robot, designed to perform repetitive or dangerous tasks. CEO Elon Musk envisions a future where humanoid robots will eventually surpass Tesla's car business in value. While the company received criticism for the robots being only semi-autonomous during the major unveil, where they were serving drinks and carrying on conversations, I think it actually identified some opportunities. Robots that are remotely controlled still offer tremendous usability and can speed up real-time implementation. Nvidia,the undisputed leader in AI chips, just unveiled its new GR00T platform, a specialized system for training and deploying humanoid robots. The GR00T chip is designed to help robots learn from human behavior and generalize tasks across environments, a key capability for making humanoids useful in the real world. Nvidia's chips are already the backbone of AI and robotics innovation, and GR00T could be the next major growth engine. SoftBank Group has been investing in robotics for over a decade and owns Boston Dynamics and SoftBank Robotics, two of the most advanced robotics firms in the world. Their work includes the Atlas humanoid robot and the widely recognized robot dog Spot. Though SoftBank's portfolio is broad, its robotics division positions it well for upside if this theme takes off. For investors looking for broader exposure, the BOTZ ETF offers a diversified approach to the robotics trend. It holds companies across the global robotics value chain, including automation leaders, industrial robot manufacturers, and key AI enablers. As humanoid robotics gains traction, BOTZ provides an efficient way to invest in the full ecosystem. Together, these stocks and ETFs represent a compelling opportunity to get ahead of one of the most transformative tech trends of the next decade. Should Investors Buy Humanoid Robotics Stocks Now? While humanoid robotics may still seem futuristic to some, the pace of innovation and investment suggests the future is arriving sooner than expected. With major players like Nvidia, Tesla, and SoftBank already staking their claims, the groundwork is being laid for significant long-term upside. Investors don't need to go all in today. As with quantum and AI before it, the adoption curve will have fits and starts. But those who get in early, whether through single-name stocks like NVDA and TSLA or diversified vehicles like BOTZ, could be positioning themselves for the next great technology boom. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
20-03-2025
- Business
- Globe and Mail
M&A News: SoftBank Buys Ampere Computing for $6.5B to Strengthen AI Portfolio
Japanese investment conglomerate SoftBank Group (SFTBY) is buying American chip designer Ampere Computing for a hefty $6.5 billion to strengthen its AI (artificial intelligence) portfolio and enhance its AI capabilities. Ampere's majority investors, Carlyle Group (CG) and Oracle (ORCL) are expected to sell their stakes to SoftBank as part of the all-cash deal. Carlyle has a 59.6% stake in Ampere, while Oracle has a 32.3% ownership. Light Up your Portfolio with Spark: Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Upon the deal's closure, Ampere Computing will become a wholly owned unit of SoftBank, but it will continue to operate under its own name. The deal is expected to close in the second half of 2025, subject to certain regulatory and closing conditions. SoftBank Will Leverage Ampere's AI Expertise Ampere is a semiconductor company specializing in the design of high-performance, energy-efficient CPUs (central processing units) used in data centers. The company licenses British chip-designer Arm Holdings' (ARM) architecture for designing its advanced CPUs, Remarkably, Arm also holds an 8.1% stake in the company and explored the possibility of acquiring Ampere early this year. Ampere's customers include renowned hyperscalers such as Microsoft (MSFT) Azure, Alphabet's (GOOGL) Google Cloud, Oracle Cloud, Alibaba (BABA), and Super Micro Computer (SMCI), among others. Japanese billionaire investor Masayoshi Son-led SoftBank is strategically expanding its AI footprint, with the aim to become a leading player in the space. Commenting on the strategic acquisition, Son noted that 'the future of Artificial Super Intelligence requires breakthrough computing power,' the kind that Ampere's technology can help achieve. Many of SoftBank's AI investments are rooted in the U.S. Interestingly, Arm Holdings, once a SoftBank subsidiary, was taken public by Son in 2023. Furthermore, SoftBank is one of the key investors in President Donald Trump's $500 billion Stargate Project, alongside OpenAI and Oracle. Plus, the company is expected to boost its investment in privately-owned OpenAI by infusing another $40 billion. Is SoftBank Group a Good Investment? On TipRanks, only one analyst has given a recommendation on SFTBY stock in the past three months. Based on the one Hold rating, SFTBY stock has a Hold consensus rating. The average SoftBank Group price target of $32.20 implies 23.3% upside potential from current levels. In the past year, SFTBY stock has lost 12.3%. Disclosure
