It's difficult to take a bearish view on robotics, particularly the actuator, bearings, and actuator components market.
The reason is that these components make up over 50% of the total bill-of-materials cost for many humanoid robots.
According to Morgan Stanley, the humanoid robotics market is projected to grow 300-fold by 2050.
A few names I'm keeping an eye on:
The humanoid robotics opportunity could be massive relative to its current revenue base of around $50 million.
Management has characterized the humanoid opportunity as something that, "when it takes off, it's going to take off quick." It trades at a significantly lower valuation than RBC.
Harmonic Drive ($6324)
It dominates the market for precision strain-wave gears used inside robotic actuators.
There are also some indirect beneficiaries:
Robotics already accounts for roughly 20% of its revenue, with bookings up 50% year-over-year.
It's a well-known name in robotics with potential exposure to the overall bill of materials for $Tesla Motors(TSLA)$ 's Optimus.
The robotics theme still feels early-stage. The biggest winners might not just be the robot manufacturers themselves, but the companies supplying the critical components that every robot needs.
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