UBS says humanoid robots could drive a 40% annual growth rate in the tech sector through 2050, bolstering demand for chips and hardware.
UBS expects humanoid robots to become a major growth engine for the tech sector, with the global market potentially reaching 86 million units by 2050, up from 15,000 this year. The firm highlighted the semiconductor segment as a key driver of this expansion.
UBS estimates the semiconductor market linked to humanoid robots could rise from $21 million in 2025 to $177 billion by 2050—about 28% of the current industry size. The report, published in UBS's latest Q-Series, outlines that components such as processors, sensors, analog chips, and memory will be central to powering humanoid intelligence and functionality.
UBS has built a projected bill of materials showing a high-end humanoid could carry about $1,400 worth of chips in 2025, increasing to $2,000 by 2050. This includes a $500 main processor and a range of components for storage, sensing, and motor control.
Nvidia (NVDA, Financials), Qualcomm (QCOM, Financials), and Taiwan Semiconductor Manufacturing (TSM, Financials) were listed as chipmakers positioned to benefit from the trend. Hardware and component firms such as Sony (SONY, Financials) and Micron (MU, Financials) also feature among potential beneficiaries. Assembly-related players include Quanta Services (PWR, Financials).
UBS believes artificial intelligence is accelerating the timeline for adoption, with humanoids potentially replacing manual labor in sectors like manufacturing, healthcare, and hospitality.
UBS analysts, led by Randy Abrams, wrote that “an inflection could pull in with AI to drive a tech product cycle,” driven by high compute requirements. Nvidia's upcoming Thor platform for humanoid processing is cited as a near-term catalyst.
Investors watching the space may look to hardware rollouts and AI training advances as signs of progress.
