Humanoid robots are artificial intelligence (AI)-powered machines that physically resemble humans and can emulate human movements and communication. While many of us can still only dream of having a humanoid maid like Rosie from the futuristic world Jetsons Cartoon, helpful humanoid robots will be here sooner than many people think.
This is the opinion of NVIDIA(NASDAQ: NVDA) CEO Jensen Huang, who led the company he co-founded in 1993 into the world’s second-largest company by market capitalization (behind Applebut not by much).
Earlier this month, Huang gave the keynote speech to kick off the Consumer Electronic Show (CES) 2025 and co-hosted a CES financial analyst conference. One of the most exciting things for Nvidia stock investors he said was this comment: “In less than 10 years, I’m sure humanoid robots will surprise everyone.” [with] “How good they are.”
Image source: Getty Images.
The 2024 global humanoid robots market was worth between $1 billion and $2.5 billion in 2024, according to most estimates. Currently, the market is largely made up of research and development of hardware and software for humanoid robots. Some companies are in the early stages of using humanoids internally, but as far as I know, no company has yet offered a humanoid robot (or “general purpose robot”) for sale to the public, at least not in the United States. . .
Market growth projections from reputable sources are almost universally very optimistic and have recently increased significantly with the rapid advancements in AI, i.e. the advent of generative AI. Generative AI, which greatly augments AI use cases, burst onto the tech scene in late 2022 with OpenAI’s launch of its ChatGPT chatbot.
“The total addressable market for humanoid robots is projected to reach $38 billion by 2035, more than six times larger than a previous projection of $6 billion.” Goldman Sachs he wrote in a report from early 2024. His previous projection was just a year ahead! This is Goldman’s “base case” model, which estimates unit shipments of 1.4 million by 2035. Along with accelerating progress in AI, the firm also cited investment in the sector growing faster than had anticipated as a factor for its huge upward revision.
The company’s “bull case” projects that humanoid robot shipments will reach 1 million units by 2031, four years ahead of its previous expectation of 2035. And it has a “blue sky” scenario that is even more optimistic.
Note that the Goldman report I’m citing is from early 2024. The firm seems likely to release another report soon, and its market size projection for the base case appears to be about to be revised upward from $38 billion. by 2035.
In fact, a report just released on January 17 from Technavio, a global technology research and advisory company, forecasts that the global humanoid robot market will reach $59.2 billion by 2029, equivalent to a dizzying annual growth rate. compound (CAGR) of around 70% from 2024.
Morgan Stanley He is also very optimistic about the growth prospects of humanoid robots. The investment banking firm predicts that there will be 40,000 humanoids working alongside humans in the US by 2030, and that number will skyrocket to 8 million by 2040 and 63 million by 2025.
Nvidia is a leader in providing chips, primarily graphics processing units (GPUs), and related technology to enable artificial intelligence capabilities. The company has been involved in robotics for years, as its technology has been used to train robots such as drones and warehouse robots and also as AI-powered “brains” within these machines.
Starting in 2024, Nvidia has significantly increased its robotics offering by entering the humanoid robotics space. This was only possible thanks to the arrival of generative AI.
In March 2024, Nvidia unveiled its Project GR00T (Generalist Robot Technology 00) AI base model for humanoid robots. The robots powered by GR00T “will be designed to understand natural language and emulate movements by observing human actions,” the company said in the press release. As part of this initiative, it also introduced a new computer, Jetson Thor, for humanoid robots, and major updates to its Isaac robotics platform, including basic generative AI models and tools for simulation.
At the same time, Nvidia announced that it is “building a comprehensive AI platform for leading humanoid robot companies such as 1X Technologies, Agility Robotics, Apptronik, Boston Dynamics, Figure AI, Fourier Intelligence, Sanctuary AI, Unitree Robotics and Xpeng Robotics. [part of China’s XPeng electric vehicle company]inter alia.”
At CES 2025, Huang announced additional initiatives for the development of AI-powered humanoid robots. Essentially, the company has created a complete offering of software, hardware and tools to enable companies to develop humanoid robots. This includes training, simulation and implementation.
All or almost all of the big players in the humanoid robotics space are using Nvidia technology to develop their robots. In my opinion, that makes Nvidia stock the best way, at least currently, for people to invest in the humanoid robot market, which is about to reach enormous size.
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Beth McKenna has positions at Nvidia. The Motley Fool has positions and recommends Apple, Goldman Sachs Group and Nvidia. The Motley Fool has a disclosure policy.
Nvidia Stock Is Poised to Be a Big Winner from Humanoid Robots, Which Are Coming Faster Than Many People Probably Realize was originally published by The Motley Fool
