In this piece, we will take a look at the 15 best humanoid robot stocks that will ride $30 trillion opportunity according to Morgan Stanley.
Over the course of the last century, the makeup of modern day society and the world as we know it has significantly changed. Humans living in the first quarter of the 20th century were just starting to get used to automobiles and long distance air travel was still a distant dream for most people.
Now, with the age of artificial intelligence seemingly upon us, the world has changed. AI, a technology exclusive to science fiction in just the past decade, is now a reality even though its highest firm, i.e. artificial general intelligence, is far from being a reality. Similarly, while factories in the 20th century had to rely on workers for most of their production, now, automation is in full swing.
No where is the impact of this clearer than in the factories of Elon Musk’s car company. The electric vehicle billionaire has often described his attempts at establishing a viable production base for electric vehicles as “hell,” and now, he believes that the future of the world lies in the hands of humanoid robots. So much so that Musk believes that by selling $1 trillion of humanoid robots annually, his company can reach an unbelievable market value of $25 trillion. Right now, it’s valued at $708.7 billion after having lost 8.96% year to date, and the combined value of the S&P 500 is $45.7 trillion.
Musk aims to have the first version of his firm’s Optimus humanoid robot in small scale production early next year and start selling the humanoid robot to other companies in 2026. A simple humanoid isn’t what one of the world’s richest men is talking about though, since the key to his plan of selling robots is autonomy. This is the key valuation driver, believes Musk, as he shared during the Q2 2024 earnings call:
And it takes the valuation, I think, to some pretty crazy number. ARK Invest thinks, on the order of $5 trillion, I think they are probably not wrong. And long-term Optimus, I think, it achieves a valuation several times that number.
Ark Invest, Cathie Wood’s hedge fund which filed $11.2 billion of investments with the SEC for Q2 2024, is also quite bullish on humanoid robots. Calling humanoid robots as generalizable robots, Wood’s firm believes that they represent a $24 trillion revenue opportunity. This opportunity is split even between household and manufacturing robots, with the investment firm outlining that even a 50% take rate coupled with a 50% productivity boost could lead to a $7.1 trillion revenue opportunity for humanoid robots. Looking ahead, Ark Invest believes that humanoid robots will “have grown to 10% of the number of humans in the manufacturing workforce” by 2030 – in an era where cheap “robots in human form-factors have begun to populate households” to “address a third of household chores” and be an attractive purchase because of the time that they help people save.
Cathie Wood and Elon Musk aren’t the only ones who are convinced about the potential that humanoid robots offer. Another big believer is the investment bank, Morgan Stanley. It believes that the biggest potential of humanoid robots is the cost savings that they can offer. As per analyst Adam Jonas’ estimates, these robots can “bring about cost savings of roughly $500,000 to $1 million per human worker over 20 years.” These savings will come at a hairline of a fraction of the cost, with the bank’s estimates sharing that they could cost anywhere between $10,000 to $30,000 to manufacture.
The investment bank’s estimates also believe that by 2030, America could have as many as 40,000 humanoid robots helping humans. Talking about overall usage, the industrial and other uses of humanoids could lead to a wage impact of $1 billion. These wage impacts grow as we move further down the future, and peak in 2050 when the bank believes that the humanoid population will be at an unbelievable 68 million for a wage impact of a whopping $3 trillion. Of course, the robots that the bank has envisioned aren’t your everyday run of the mill equipment.
These will use artificial intelligence, which naturally expands the investment options for investors looking to profit from this potential growth. As per analyst Ed Stanley, the list of potential contenders for investment as humanoid robot stocks includes “companies making the generative AI that will power the robots’ brains, the mechanics that make their bodies run, and the battery storage needed to power them. Further development in those three areas will be key to achieving humanoid commercialization..”
If you thought that we were done with trillion dollar estimates for the humanoid robot industry, you’d be wrong. Another such estimate comes from the management consulting firm Roland Berger. It believes that if the sector scales according to optimistic projections, then by 2050, 50 million humanoid robots could generate $1.5 trillion in revenue. However, the firm does caution that this optimism is contingent on “heavily dependent on technological progress and the regulatory environment” as regulatory scrutiny of humanoids is benign right now as the majority of them are currently prototypes.
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Our Methodology
We used Morgan Stanley’s Humanoid 66 stock list. for our list of the biggest beneficiaries of the humanoid robot race. This list is divided into three categories, humanoid enablers and beneficiaries, enablers, and beneficiaries. From these three, we selected the top stocks from the beneficiaries list. If you’re interested in the other two categories, be sure to check out $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
15. Mercedes-Benz Group AG (OTC:MBGAF)
Number of Hedge Fund Investors in Q1 2024: N/A
Mercedes-Benz Group AG (OTC:MBGAF) is one of the most well known car companies in the world. This makes it unsurprising that the firm will be a beneficiary of humanoid robots. This is because car manufacturing is a heavy manufacturing industry where workers often face safety risks when dealing with large and heavy objects. By using humanoids, Mercedes-Benz Group AG (OTC:MBGAF) can reduce employee risks and improve costs along with production efficiency. As a whole, the firm’s hypothesis depends on robust economic growth and more so than other companies like Toyota. This is because Mercedes-Benz Group AG (OTC:MBGAF) sells high end vehicles that require more consumer discretionary income. Additionally, it relies on consistent and stable energy to run its factories, a weakness that was made clear in 2022 when Mercedes-Benz Group AG (OTC:MBGAF) produced parts in advance to mitigate any impacts to gas supplies from Russia.
14. Bayerische Motoren Werke Aktiengesellschaft (OTC:BMWYY)
Number of Hedge Fund Investors in Q1 2024: N/A
Bayerische Motoren Werke Aktiengesellschaft (OTC:BMWYY) is another German automotive giant. Like its peer Mercedes, it benefits from using humanoids by saving on costs, ensuring employee safety, and increasing production efficiency. While the estimates for humanoids in our introduction stretch out to decades in the future, Bayerische Motoren Werke Aktiengesellschaft (OTC:BMWYY) is one of the early movers in this space. The firm plans to use humanoid robots in a factory in South Carolina this year, after it announced a deal with a startup earlier this year. Bayerische Motoren Werke Aktiengesellschaft (OTC:BMWYY) made progress on this front in August when it tested the first humanoid robot in a German factory and used it for vehicle chassis manufacturing. Yet, since the firm still generates revenue from selling cars, any weaknesses or unexpected costs don’t do well for the shares. This was also the case in September when Bayerische Motoren Werke Aktiengesellschaft (OTC:BMWYY)’s stock dropped by 10% after it cut 2024 EBITDA margin guidance to 6% – 7% from an earlier 8% – 10% following a costly recall.
13. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Investors in Q1 2024: 52
JD.com, Inc. (NASDAQ:JD) is a Chinese eCommerce company that sells products such as appliances, electronics, and care products on its platform. It operates its own warehouses, which also exposes JD.com, Inc. (NASDAQ:JD) to become a beneficiary of the growth in humanoid robots. Robots have been shown to be quite beneficial for the logistics industry, with Jeff Bezos’ eCommerce company reducing its click to ship time in warehouses by 78% by using them. JD.com, Inc. (NASDAQ:JD) is an early mover in the broader robotics space, and it opened an automated warehouse in 2018 that was designed to ship 200,000 packages daily by employing a mere four people to demonstrate the scale of humanoid robots’ impact on the warehouse industry. As a whole, JD.com, Inc. (NASDAQ:JD) is vulnerable to economic downtrends due to the consumer centric nature of its business which is susceptible to purchasing power drops. This has created worries stemming from the weakening Chinese economy, with JD.com, Inc. (NASDAQ:JD)’s stock jumping 4% in August after it announced a $5 billion buyback to keep investor pessimism at bay.
Ariel Investments mentioned JD.com, Inc. (NASDAQ:JD) in its Q1 2024 investor letter. Here is what the fund said:
“We initiated a position in China-based technology-driven E- commerce company, JD.com, Inc. The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth and margin expansion on a go-forward basis.”
12. Tenaris S.A. (NYSE:TS)
Number of Hedge Fund Investors in Q1 2024: 22
Tenaris S.A. (NYSE:TS) is a Luxembourg based specialty steel company that sells heavy duty products such as steel pipes and casings to the oil drilling industry. It also sells pipes used in car manufacturing and other industries. The nature of its products and manufacturing operations means that Tenaris S.A. (NYSE:TS) is particularly suited to benefit from humanoids due to the robots’ weight lifting strengths and no susceptibility to injury when compared to humans. On the business front, Tenaris S.A. (NYSE:TS)’s exclusive focus on the oil industry means that its fortunes are also tied to the health of the sector. Additionally, any competition from cheap steel products can hurt its market share, and for investors, the key way to gain visibility into Tenaris S.A. (NYSE:TS)’s business is to check its backlogs. Its industrial products necessitate long lead times, and the resulting backlogs mean that the firm benefits from cash flow visibility.
Tenaris S.A. (NYSE:TS) also benefits from long term contracts. On this front, here’s what management shared during the Q2 2024 earnings call:
“This quarter we renewed our long-term contract for Shell operation in the Gulf of Mexico, and have been selected by ExxonMobil for their upcoming operation in Angola. We were also awarded the supply of casing and offshore line pipe and coatings by Woodside for Trion project in May. In the second half, we will begin deliveries of coated line pipe for Equinor Orion [ph] project in Brazil and we have an extensive backlog of order for offshore projects going into 2025. Today however, as we look towards the second half we see that our sale will be lower than the sale in the first semester, affected mainly by three factors in the United States a record level of oil and gas production are being sustained even if drilling activity decreased, reduced overall demand for pipes.”
11. Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Investors in Q1 2024: 66
Schlumberger Limited (NYSE:SLB) is one of the largest oil and gas exploration and production equipment providers in the world. This provides it with a dual front to benefit from humanoids. On the first front, Schlumberger Limited (NYSE:SLB) can become a humanoid robot manufacturer by leveraging its experience in the oilfield services market to make products specifically suited for the industry. On the second front, it can also use humanoids to augment its product portfolio by using them to provide new services to existing customers. Oil exploration is one of the most dangerous jobs in the world, and currently, Schlumberger Limited (NYSE:SLB) uses robots to inspect oil wells. Additionally, the unsaturated nature of its industry where only a handful of companies operate means that Schlumberger Limited (NYSE:SLB) can gain market by exploiting rivals’ weaknesses. One such development took place in August 2024 when the Financial Times reported that the firm is expanding operations in Russia after rival Haliburton’s exit. Overall, Schlumberger Limited (NYSE:SLB) benefits from its customers’ requirement to build long term partnerships and an industry that is less susceptible to sharp downturns. However, regulatory scrutiny of its operations can prove to be a headwind.
Artisan Partners mentioned Schlumberger Limited (NYSE:SLB) in its Q4 2023 investor letter. Here is what the firm said:
“On the downside in Q4, our two energy holdings, Schlumberger, the world’s largest oil services company, and EOG Resources, a US shale- focused E&P company, were weak along with the broader sector. We have stringent criteria for business quality, which is particularly important in commodities sectors as these businesses do not control the underlying commodity prices, which can be volatile. We expect Schlumberger to continue to successfully navigate market volatility and deliver on its free cash flow and profit margin growth objectives from combination of activity growth and pricing gains. The stock has been among our top contributors since we initiated our position in December 2020.”
10. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Investors in Q1 2024: 38
Halliburton Company (NYSE:HAL) is another key player in the global oilfield services industry. Like its peer and rival Schlumberger, it can benefit from self designing humanoid robots that are customized to industry requirements or by simply providing robots to its customers for their oil drilling activities. A key point for Halliburton Company (NYSE:HAL) is the fact that it has focused more aggressively on robots than its peer. For instance, it announced a well construction automation contract in 2023, holds the third highest number of patents globally for underwater oil exploration robots, and kept up the pace in 2024 by signing a deal for a tractoring robot called MicroRig. Like other well services firms, Halliburton Company (NYSE:HAL)’s stock performance depends on the health of the oil industry and its ability to maintain market share in an industry dominated by a few companies and with little avenues for product differentiation. The shares were under pressure in late August and early September as recessionary worries coupled with costs of a cyberattack spooked investors.
Carillon Partners mentioned Halliburton Company (NYSE:HAL) in its Q4 2023 investor letter. Here is what the firm said:
“Halliburton provides equipment and services to the global energy industry. The company’s shares underperformed during the quarter, largely due to downward pressure on crude oil and natural gas prices. Despite this recent move, ongoing discipline among North American shale producers could continue supporting relatively healthy activity growth at current commodity price levels, which should provide stability to service providers such as Haliburton. The company is also poised to benefit from the ongoing, multi-year international and offshore upstream investment cycle that is less dependent on short-term swings in commodity prices.”
9. Baker Hughes Company (NASDAQ:BKR)
Number of Hedge Fund Investors in Q1 2024: 43
Baker Hughes Company (NASDAQ:BKR) is the third oil and gas exploration and production equipment provider on our list of the top beneficiaries of humanoid robots – a fact that underscores the potential of robots to disrupt this industry. However, unlike its peers, more than 75% of Baker Hughes Company (NASDAQ:BKR)’s revenue is exUS, which allows it to maintain a diversified customer base. This helps protect against US specific downturns, which have impacted rival Halliburton in 2024. Baker Hughes Company (NASDAQ:BKR)’s financial and stock performance depends on its ability to land large orders and keep margins under control. Additionally, and perhaps crucially, it has also introduced diversification into the business model through its Industrial and Energy Technology business division. This business offers products to other industries, such as paper manufacturing and power generation – allowing Baker Hughes Company (NASDAQ:BKR) to maintain income statement stability in case of an oil downturn.
Baker Hughes Company (NASDAQ:BKR)’s management commented on this business in its Q2 2024 earnings call. Here is what it said:
“For the second consecutive quarter, IET outperformed our EBITDA guidance, mostly attributed to excellent conversion of Gas Tech Equipment backlog that drove revenue and margin upside. IET orders were strong at $3.5 billion with non-LNG Gas Tech Equipment accounting for 97% of the total. Year-to-date, we’ve now booked $6.4 billion of IET orders and we remain on track to achieve our guidance range $11.5 billion to $13.5 billion. The versatility and differentiation of the IET portfolio across Industrial and Energy segments remains a significant competitive advantage for Baker Hughes, allowing us to profitably grow with new customers and applications.”
8. Kuehne + Nagel International AG (OTC:KHNGF)
Number of Hedge Fund Investors in Q1 2024: N/A
Kuehne + Nagel International AG (OTC:KHNGF) is one of the biggest freight and logistics companies in the world. Headquartered in Switzerland, it offers shipping over land, sea, and air. Crucially for Kuehne + Nagel International AG (OTC:KHNGF), it also offers supply chain solutions for other businesses, which is important for its potential as a humanoid beneficiary. This is because while Kuehne + Nagel International AG (OTC:KHNGF) can benefit from humanoids in its own warehouses (just as it benefits from using picking robots right now) it can also generate value by offering a one stop humanoid solution to businesses that often seek to outsource new systems implementations for cost saving and expertise acquirement. Kuehne + Nagel International AG (OTC:KHNGF)’s financial heft, as evidenced by its CHF2 billion in cash and equivalents also means that it has sufficient resources to devote to emerging technologies.
7. DSV A/S (OTC:DSDVY)
Number of Hedge Fund Investors in Q1 2024: N/A
DSV A/S (OTC:DSDVY) is another global logistics and shipping giant. Headquartered in Denmark, it provides air, sea, land, and specialized freight delivery products. DSV A/S (OTC:DSDVY) is also one of the earliest movers in the use of robots by the logistics industry. The firm partnered up with universities back in 2019 to understand the impact of collaborative robots on warehouse operations. DSV A/S (OTC:DSDVY) followed up in 2020 by opening a Norwegian factory with robotic storage. It kept up the pace in 2024 by partnering up with a robotics company. These developments provide DSV A/S (OTC:DSDVY) with a stable platform that it can leverage to expand into humanoid robots in the future. As a whole, the stock could see headwinds in the future if DSV A/S (OTC:DSDVY)’s bid to acquire Deutsche Bahn’s logistics arm is succesfull since it will grow its operational footrpint.
6. Deutsche Post AG (OTC:DPSTF)
Number of Hedge Fund Investors in Q1 2024: N/A
Deutsche Post AG (OTC:DPSTF) is one of the biggest logistics and shipping companies in the world with more than half a million employees. A German firm, it benefits from the strong demand for industrial robots in Germany, a country that ranks in the top five largest adopters of industrial robots in the world. Deutsche Post AG (OTC:DPSTF)’s sizeable market share provides it with a stable business that is not dependent on growth for driving share price performance. To keep up with investor expectations, the firm has to focus on its fulfillment metrics and delivery times to ensure that it does not lose market share. On the robotics front, Deutsche Post AG (OTC:DPSTF) is a global leader in the freight industry. As per its mobile robots partner Locus Robotics, Deutsche Post AG (OTC:DPSTF) crossed 500 million warehouse picks through robots in May 2024. This came after the firm had expanded its focus from picking to sorting in March 2024 by partnering up with an American robot company.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Investors in Q1 2024: 302
Amazon.com, Inc. (NASDAQ:AMZN) is the biggest eCommerce company in the world. It operates close to 200 mega fulfillment centers worldwide, which offers it a wide base to benefit from humanoid robots. Amazon.com, Inc. (NASDAQ:AMZN) is also a high technology company courtesy of its semiconductor design and consumer electronics businesses. This means that the firm has an adequate technological base that it can leverage to introduce humanoids in its warehouses. Amazon.com, Inc. (NASDAQ:AMZN)’s use of Kiva mobile robots in its warehouses has cut down click to ship times by 78%, and its partnership with Anthropic also provides it with a large artificial intelligence platform to make up the “brains” of humanoid robots as envisaged by Morgan Stanley. Amazon.com, Inc. (NASDAQ:AMZN) is also an early mover in the humanoid space as it started testing these robots in US warehouses in 2023. Since it still relies on eCommerce for most of its revenue, Amazon.com, Inc. (NASDAQ:AMZN)’s stock performance depends on economic conditions. Additionally, it could see additional tailwinds from humanoids through a reported new business division targeting supply chains and logistics.
Amazon.com, Inc. (NASDAQ:AMZN) believes that using robots will help it cut costs as management shared during the Q2 2024 earnings call:
“As we pursue these initiatives, we remain focused on lowering our cost to serve. We have a number of opportunities to further reduce costs, including expanding our use of automation and robotics, further building out our same-day facility network, and regionalizing our inbound network.”
4. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Investors in Q1 2024: 63
McDonald’s Corporation (NYSE:MCD) is a global leader in the fast food industry, which naturally makes it a key beneficiary of humanoid robots. This is due to the extensive consumer facing nature of its business, where humanoids are likely to help make customers feel comfortable when interacting with machines. McDonald’s Corporation (NYSE:MCD)’s vast financial resources, as evidenced by $4.5 billion in cash means that it can test new technologies without feeling the pinch. The firm used this to open its first robotic restaurant in Texas in 2023, making it an early mover in the space. Overall, McDonald’s Corporation (NYSE:MCD)’s global operations footprint offers it a large market and stability, but its exclusive exposure to consumers means that revenues are hurt in a tough economy. As a result, even though McDonald’s Corporation (NYSE:MCD) targets low to mid income customers, its revenue struggles when consumer spending is low, and the firm has to carefully balance any potential price increases during an inflationary era with its impact on demand during such times. Additionally, McDonald’s Corporation (NYSE:MCD) expanded automation in its stores in September when it introduced kiosks to collect cash from customers and remove the need for cashiers, as per Bloomberg.
Carillon Tower Advisers mentioned McDonald’s Corporation (NYSE:MCD) in its Q1 2024 investor letter. Here is what the firm said:
“McDonald’s faces several short-term headwinds. Lower-income consumers have been cautious with spending, as they are feeling the cumulative effects of inflation more than higher-income cohorts. As the low cost/ value player in fast food, McDonald’s has a customer base that skews lower income. Also, as an international company, McDonald’s is feeling negative effects from war and tensions in the Middle East, as well as softness in China.”
3. Domino’s Pizza, Inc. (NYSE:DPZ)
Number of Hedge Fund Investors in Q1 2024: 40
Domino’s Pizza, Inc. (NYSE:DPZ) is a well known American pizza chain. It is also one of the biggest players in the food delivery logistics industry, which has also allowed Domino’s Pizza, Inc. (NYSE:DPZ) to experiment with robots in its delivery chain. The firm has used robots to deliver pizzas in cities such as Berlin, and like MCD, the customer facing nature of Domino’s Pizza, Inc. (NYSE:DPZ)’s business means it has to focus more on humanoids for a smooth in store customer experience. Additionally, using humanoids in its kitchens will allow Domino’s Pizza, Inc. (NYSE:DPZ) to maintain its existing flow models and use machines to introduce efficient workers. As a whole, its investors focus on same store sales growth and international expansion to check how Domino’s Pizza, Inc. (NYSE:DPZ) is competing with other food chains.
Domino’s Pizza, Inc. (NYSE:DPZ)’s management shared details for same store sales during the Q2 2024 earnings call:
“During Q2, same store sales for the US came in at 4.8%, which was in-line with our expectations. Our strong comps in the quarter for carryout of 7.9% and delivery of 2.7% were once again driven primarily by transaction growth.
Our US same store sales continued to be primarily driven by transaction growth from our new loyalty program and our strong marketing programming. We also benefited from 1.5% of pricing, which was inclusive of high single digits in California. Our sales mix from Uber grew to 1.9% for the quarter. The incrementality of Uber sales continues to be in-line with our expectations. Our comp tailwinds were partially offset by a higher carryout mix, which carries a lower ticket than delivery. Shifting to US unit count, we added 32 net new stores in-line with our expectations. This brings our US system store count to 6,906. We remain on track to achieve our 175 or more net store growth target in the United States in 2024, and we anticipate opening our 7,000 store by the end of the year.”
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Investors in Q1 2024: 78
General Motors Company (NYSE:GM) is one of the biggest car manufacturers in the US. Despite its heft, the firm has lagged in the EV race and it is playing catch up with Tesla. However, while Tesla’s moves in the humanoid robot industry through Optimus are well known, General Motors Company (NYSE:GM) also has somewhat similar competitive advantages. This is because it is the only car company in the world whose humanoid robot has been used in space. General Motors Company (NYSE:GM) partnered up with NASA to develop the Robonaut 2 robot in 2007, which spent years working on board the International Space Station (ISS). General Motors Company (NYSE:GM) expanded its partnership with NASA on humanoid robots in 2023, providing it with the agency’s key technological know how which it can use to benefit from the robots in its manufacturing plants. This might prove to be pivotal, as General Motors Company (NYSE:GM) has to catch up with Tesla to expand its share of the EV market in the future.
Diamond Hill Capital mentioned General Motors Company (NYSE:GM) in its Q1 2024 investor letter. Here is what the fund said:
“Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well- positioned relative to secular tailwinds within the automobile business.”
1. Ford Motor Company (NYSE:F)
Number of Hedge Fund Investors in Q1 2024: 41
Ford Motor Company (NYSE:F) is another mega American car manufacturer. Like Tesla and GM, it is also aggressively targeting robotics development which opens up the path for it to become one of the biggest beneficiaries of humanoid robots. While Tesla’s robot development plans are new, Ford Motor Company (NYSE:F) partnered up with the University of Michigan in 2021 to build a $75 million, 134,000 robotics development facility in Ann Arbor. This facility also focuses on bipedal robot development, which is the precursor to humanoid robots. Ford Motor Company (NYSE:F) is another serious player in the bipedal industry as well, as it has partnered up with Agility to create value additions to autonomous cars. Agility’s bipedal robot, called Digit, can hook up with cars to benefit from their map data for navigation, and it is also designed to carry groceries from a car to the doorstep. This could expand the ride hailing business model of autonomous cars to deliver groceries too, and provide Ford Motor Company (NYSE:F) with a unique moat in the industry.
Ford Motor Company (NYSE:F)’s management has big plans for its cars when it comes to robots. Here’s what it said during the Q2 2024 earnings call:
“Our vehicles are increasingly general-purpose computers capable of delivering the type of application environment, AI for our customers and user experiences that we expect from all of our digital devices. And this allows us to create powerful, connected, ever-improving customized experiences, which I’ll talk about. Many of you may be surprised that Ford leads on OTAs. According to the 2024 OEM OTA capability rankings in North America, we are the leader based on quality of our updates. This is not how many updates we do, although we do a lot. It’s about the ability to improve the fundamental performance and capability of the entire vehicle and all the modules in the vehicle. And there’s no better evidence than Mach-E. Longer range, better efficiency on the battery, faster zero to 60 times, better BlueCruise performance, we’ve done it all with Mach-E for many years now.
Our vision is not just a powerful computer on wheels. It’s actually a robot. We will link with these digital experiences.”
F is the biggest beneficiary of a growth in humanoid robots according to Morgan Stanley. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than F but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None.
