Key Points
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Humanoid robots will become critical products within a few years, and all of these robots require chips.
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Although CEO Jensen Huang has been under fire, Nvidia’s GPUs are still second to none, and they’re essential for humanoid robots.
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Micron has carved out a dominant position in the memory chip industry, and these chips are required for the humanoid robot expansion.
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While chips and AI models have been receiving most of the attention, robotics is a long-term growth opportunity that can mint new millionaires. Robots can help with a wide range of tasks, including security, physical labor, and military.
Grandview Research projects a 32% CAGR for the AI robotics industry through 2033, and these two robotics stocks are well-positioned for that opportunity.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Nvidia
All robots need GPUs to operate, and Nvidia (NASDAQ: NVDA) remains the gold standard. It’s leagues ahead of the competition, with revenue surging by 106% year-over-year in its fiscal 2027 second quarter.
The high revenue growth also comes with rising profit margins. Net income was up by 126% year-over-year, and net profit margins reached 62%. Nvidia was able to return $26 billion to shareholders that quarter and guided for 12.2% sequential growth in its fiscal 2027 third quarter.
Despite the strong quarter, Nvidia has stumbled significantly over the past month. The main headwind for the company is Nvidia CEO Jensen Huang’s two affairs. News about an affair with a spy was quickly followed by details about a separate affair with a Nvidia executive.
These details are affecting Nvidia’s stock price because the company’s board is reportedly preparing to oust the CEO from his position. Investors tend to get jittery when there is uncertainty around a company’s leadership.
However, Nvidia’s AI chips are already the preferred choice for many companies, and the company is far more than Jensen. Just as Apple (NASDAQ: AAPL) has continued to thrive after Steve Jobs’ passing and Tim Cook stepping down as CEO, I anticipate a similar story for Nvidia, assuming Huang is actually removed from his position. If Huang manages to stay put, the entire dip over the past week would be hard to justify.
The robotics industry will need plenty of chips to support the long-term buildout. Nvidia has the strongest reputation and delivers better results than other GPUs. Its market share should be safe regardless of recent developments.
Micron
Just as humanoid robots need GPUs, they also need memory chips. Micron (NASDAQ: MU) specializes in that part of the trade and has delivered solid fundamental results that justify its shares almost tripling year-to-date.
The company’s high-bandwidth memory chips have become a staple for many hyperscalers and data centers. This level of reach, combined with ongoing memory chip shortages, helped Micron boost its revenue by 30.8% sequentially in its fiscal 2026 fourth quarter.
The chipmaker crushed guidance by delivering $54.23 billion in revenue during that quarter instead of the expected $50 billion. Micron anticipates a stronger fiscal 2027 and guided for $61.5 billion at the midpoint for Q1 FY27.
Humanoid robots can eventually become a big part of Micron’s fundamental growth. These robots require robust data centers, and all of those facilities need plenty of memory chips. However, each of these same humanoid robots needs its own memory chips inside the physical unit to function properly. Each humanoid robot increases the need for memory chips for physical units and the actual data centers.
While you can guess which humanoid robot will be the biggest winner, Micron is essentially selling shovels during the gold rush. All of the humanoid robot start-ups will need memory chips, including the ones that turn into tech giants in the future.
In the meantime, Micron is already producing substantial revenue growth while guiding for even better results in future quarters. All of that momentum also comes with high net profit margins. That figure came to 69.5% in the most recent quarter, showing that Micron keeps a large majority of its revenue.
A 4 forward P/E ratio is the icing on the cake that highlights Micron’s low valuation compared to most tech stocks. It’s trading like a bank stock despite delivering some of the highest growth rates in the entire stock market.
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Marc Guberti has positions in Apple. The Motley Fool has positions in and recommends Apple, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
