Wall Street is abuzz with talk about AI-driven chatbots, but they're overlooking a much larger opportunity. The true financial potential lies with robots that perform physical tasks—sorting packages, assembling components, and transporting goods. Goldman Sachs recently increased its projection for the humanoid robot market to $38 billion by 2035, and industrial robotics could soar to $94 billion. With the advent of AI foundation models, the cost to train robots has plummeted, making it ten times more affordable.
Consider Amazon ( AMZN 0.78%) warehouses, where over a million robots already collaborate with employees to handle billions of shipments. This isn't a futuristic vision—it's the current reality. Tesla ( TSLA 3.94%) is ramping up humanoid robot production from hundreds to thousands. Nvidia ( NVDA 0.27%) provides the Isaac platform that powers both companies, as well as nearly every major robotics initiative. Together, these three technology leaders offer investors unique entry points into the burgeoning $130 billion robotics industry.
Image source: Getty Images.
Tesla's $20,000 wager
Tesla suggests that Optimus could eventually account for 80% of its future valuation. While that may seem bold, CEO Elon Musk has a history of realizing ambitious projects—though often later than initially planned. In 2025, the company produced only a few hundred units, falling short of its 5,000-robot target, and recent leadership changes have cast doubt on its ability to deliver.
The core of Tesla's strategy is pricing. The company aims to sell humanoid robots for $20,000 to $30,000, whereas competitors like Figure and Boston Dynamics set prices well above $100,000. Achieving this price would shift humanoids from rare capital investments to scalable operational assets. Even its diner demonstration, which some dismissed as mere publicity, provided invaluable real-world data that can't be replicated in a lab.
Tesla's strength lies in its vertical integration. The neural networks used for its vehicles can also guide robots, its EV batteries can power humanoids, and its manufacturing scale is unmatched by rivals. The stock has risen about 5.5% this year, and with a forward P/E of 166, the market is pricing in near-flawless execution. Yet, if Optimus fulfills even a small portion of its potential, the resulting gains could far exceed those from Tesla's automotive segment.
Amazon's million-robot edge
Amazon avoids the hype and instead operates the world's largest robotic workforce—over a million robots are already integrated into its logistics network. These are not experimental models, but fully operational systems moving millions of parcels daily.
With the introduction of DeepFleet, Amazon reports a roughly 10% improvement in travel efficiency—a modest increase that becomes significant at a global scale. Its Hercules robots can lift up to 1,250 pounds, while Proteus models safely navigate among people, combining robust performance with user-friendly design.
Amazon's advantage extends beyond sheer numbers to seamless integration. The latest facilities operate with far more robots than older ones, yet also employ more skilled staff for maintenance and reliability.
Amazon demonstrates that automation transforms jobs rather than eliminates them, boosting productivity and reducing costs per unit. While competitors showcase prototypes, Amazon embeds robotics into everyday operations, creating a sustainable competitive advantage and a profit engine that few can match.
Nvidia's robotics platform dominance
Nvidia doesn't manufacture robots; instead, it develops the chips and software that enable them. The company's Isaac GR00T foundation model is used to train humanoids, while Isaac Lab and Sim offer simulation environments, and Jetson Thor delivers advanced inference at the edge. This suite is rapidly becoming the standard toolkit for robotics teams from Boston Dynamics to Agility, even as some firms add their own customizations.
Nvidia's approach is similar to its CUDA strategy in AI: build essential software and let hardware demand follow. By providing the intelligence, development tools, and infrastructure, Nvidia benefits regardless of which robot design prevails. Trading at about 50 times earnings, the stock already reflects high expectations, but if robotics adoption accelerates toward trillion-dollar projections, Nvidia's platform could capture substantial value from the rise of physical AI.
