Stocks to Watch: Honeywell, Tesla, and more...

Humanoid Robot stocks

Inside.com Part of   Network November 05, 2022

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Hi Insiders,  Earlier this week, Goldman Sachs released a report on the market for humanoid robots. The firm sees this as a $6B industry in the next 10-15 years, which will continue to grow from that point. They estimate that by 2030, 4% of the manufacturing labor shortage gap in the U.S. could be filled by these humanoid robots and that these robots could be responsible for 2% of all elderly care by 2035. By 2035, in the best-case scenario, they see this market being equivalent to the EV market and equivalent to 33% of the smartphone market.  For those of you who want to bet on this market, today we will look at six companies currently working on technology in the space.  Onward and Upward,  Liam

Stock to Watch: Honeywell (NASDAQ: HON) Honeywell is building sensing components such as gyroscope/IMU technology.  The company currently has a buy rating from Goldman Sachs. According to Goldman Sachs, the stock has a 12% upside to its target price.

Stock to Watch: Tesla (NASDAQ: TSLA) Tesla is the only major company working on a complete humanoid robot that has already been demoed at its investor day.  The company has a buy rating from Goldman.  Goldman estimates the stock will gain 34% in the next 12 months.

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Stock to Watch: Magna International (NYSE: MGA) This company specializes in building specific components for automotive manufacturing but has been exploring alternative uses for its camera, lidar, and ultrasonic technologies.  The stock has a buy rating from Goldman.  The stock has an 18% implied upside, according to Goldman.

Stock to Watch: Raytheon Technologies (NYSE: RTX) The company works on gyroscope and IMU technology, which are important sensing components.  The stock has a buy rating from Goldman.  The stock has a 16% implied upside to its target price, according to Goldman.

Stock to Watch: Aptive PLC (NYSE: APTV) The company also works on camera, lidar, and ultrasonic technology, which can be used in a humanoid robot.  The stock has a buy rating from Goldman.  The stock has a 33% implied upside, according to Goldman.

Stock to Watch: Innoviz Technologies (NASDAQ: INVZ) Another company working on camera, lidar, and ultrasonic technology.  Goldman recommends the company as a buy.  Goldman believes the company will rise by 60% in the next 12 months.

Insights Goldman did not recommend any non-U.S. listed stocks when creating its list, but numerous Asian companies would benefit from growth in this industry, including THK, a Japanese stock, Sanhua in China, and more.  Another limitation on this list is Goldman's focus on hardware. It's possible that the biggest winners in this space are the AI companies that can develop the software for humanoid robots and that much of the required hardware will already be in mass production due to the demand for similar technology in cars, phones, etc.  While this list is a great place to start, if you are investing big in this industry, it is worth doing some research to consider some software companies (OpenAI, Microsoft) that could be winners and to look into some of the Asian companies in the industry (Hiwin, THK, Sanhua).

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Liam Gill is a founder, lawyer and investor. He previously founded Fumarii Technologies, which became a top 20 ranked cloud computing service (Yahoo Finance! 2019) valued at over $30M. He holds an LLB Laws (UK), MSc Management and Master of Laws and currently practices law in Vancouver, Canada.   Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords.

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