Jefferies names the stocks that can win in the AI humanoid robot boom
Humanoid robots could be one of the best automation growth opportunities in the next 10 years, and a handful of companies are set to be the winners amid the boom, according to Jefferies. Three drivers are ushering in this new era of robotics, the firm said: an aging population increasing demand for supplemental labor, declining interest among younger generations in manufacturing jobs and continuing breakthroughs in semiconductor and artificial intelligence technology. “Humanity appears to be on the precipice of wider adoption of humanoid automatons,” Jefferies wrote in a Wednesday research note. “While we anticipate the earlier adoption will be in commercial settings, where [return on investment] is clearly defined, global demographics, safety concerns and the desirability of certain jobs will prompt wide-spread adoption.” Analysts at the firm shared a list of companies they believe can benefit from the technology’s development and adoption: Making the list is Tesla , where analyst Philippe Houchois has a hold rating and a $300 price target. Elon Musk’s electric vehicle manufacturer has touted its recent pivot toward building humanoid robots , but Houchois noted that the company has also given few specific details about it. “Large-scale applications remain ill-defined for the broader robotics industry, suggesting uncertainty about the commercial viability and market timing,” Houchois wrote. But he added Tesla’s advantage may come from its head start and size. “Tesla’s edge could lie in early applications through its own manufacturing facilities and its design-to-manufacture approach… Importantly, and unlike many peers, Tesla can self-fund developments in AI, Optimus robots and stationary storage,” the analyst said Analyst Chris LaFemina said that 70% of the weight of humanoid robots comes from metal. He thinks Freeport McMoRan’s exposure to copper, Alcoa’s to aluminum, and Nucor’s to steel could mean these companies have growth opportunities as demand for these commodities rises. Semiconductor company Analog Devices also made the list. Analyst Blayne Curtis has a buy rating and a $410 price target on the stock. Its expertise in sensors and analog control, along with a partnership with Nvidia to integrate those components into AI computing, set the company up well in the environment, Curtis said. “This combination positions ADI to benefit as humanoid robots scale up, since every joint and sensor in these robots represents a content opportunity for ADI’s signal-chain and power technologies,” Curtis wrote.