The artificial intelligence investment narrative is shifting from software and data centers to what strategists call "physical AI" — robotics, autonomous vehicles and humanoid machines. Wall Street firms including JPMorgan, Barclays and SoftBank see the sector as a multi-trillion-dollar opportunity, with the humanoid robotics market alone projected to grow from $2–3 billion today to $200 billion by 2035. Nvidia CEO Jensen Huang has identified robotics as the company’s second-largest long-term growth driver, while autonomous vehicles are expected to be the first major commercial application.
Investors are now looking at enablers like lidar maker Ouster, whose shares surged 90% this year after its sensors qualified for Nvidia’s DRIVE Hyperion platform, and Teradyne, which combines AI chip testing with collaborative robots. A dedicated closed-end fund, RoboStrategy (BOT), recently listed to provide exposure to public and private robotics firms.
Meanwhile, Asia’s tech rally is becoming more selective. Analysts highlight TSMC as the cleanest AI infrastructure play ahead of its July 16 earnings, with Citi adding an upside catalyst watch. SK Hynix, leveraged to high-bandwidth memory demand, plans a $28 billion Nasdaq listing. Tencent offers a less crowded AI theme through gaming and ad recovery, supported by AI-powered targeting. All three stocks are drawing analyst upgrades despite heightened sector volatility.
