The rise of the robotics revolution and “physical AI” could keep the AI trade alive and well through 2026 and even into 2027. Of course, valuation concerns remain, as do timing the innovations that could finally lead to the ROIs large enough to ease the fears of those who’ve subscribed to the “AI bubble burst” scenario, which may or may not pan out the way the biggest bears on Wall Street expect.
An argument could be made that the AI stocks have already paid their dues, with many Magnificent Seven stocks falling into correction territory (the latest being shares of Apple (NASDAQ:AAPL | AAPL Price Prediction), which had also lost its position in the market cap rankings to Google parent Alphabet (NASDAQ:GOOGL)).
Are humanoid robots really right around the corner?
Either way, timing AI stocks in either direction could be difficult to do, especially as new trends within AI (think agentic AI, which may finally live up to the promises from 2025) act as potential positive surprises. While I see tremendous medium-term potential in the rise of AI agents, it seems like some visionaries are already focused on what comes next. Nvidia (NASDAQ:NVDA) top boss, Jensen Huang, is always thinking a few steps ahead of everyone else.
When people were viewing the GPU maker as a video-gaming or Bitcoin-mining play, Mr. Huang was already looking forward to the rise of AI and the boom in GPU demand that it’d entail. Now that the stock has blasted off and his AI vision has come true, he’s already focused on the next step.
Given his latest commentary at this year’s CES conference, it feels like something big could lift the AI trade again. Jensen Huang is bullish on physical AI and robotics. What’s more, though, is that he sees robots with human-level capabilities arriving in 2026.
Is the world ready for “AI immigrants” to arrive?
Undoubtedly, if you were at CES 2026, you’d see more than a handful of impressive consumer robots. And while the technology still feels many years away, I wouldn’t doubt Huang if he sees the physical AI wave hitting far sooner than expected, especially when you consider the fact that many of the most profound robotics innovations aren’t being featured at a trade show; they’re hard at work behind the scenes in factories and warehouses.
In any case, Jensen Huang brought up the term “AI immigrant,” which may very well be how most people should think about the rise of robots as they look to assist, automate, and even replace certain workers. The rise of digital labor may not be a new concept, but if Huang is right, perhaps the general public isn’t quite ready for the magnitude of disruption that looms.
While it’s tough to time when robotics will really start taking off, it was seriously impressive to witness various robots in action at CES 2026. The most jarring thing is that they’ll only get better from here, as AI models improve further and strategic partnerships aim to accelerate the technology’s advancement.
The Mag Seven are great robotics plays
Whether or not 2026 is the year when robots have their big moment (a “ChatGPT moment” may very well be possible), I do think it’s time to start thinking about which robotics names are worth investing in. Nvidia stock is a name that immediately comes to mind, as Jensen Huang thinks miles ahead of all others in the industry. The rest of the Mag Seven, including Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), Apple, and Alphabet, could also have tons to gain.
Perhaps Alphabet stands out as the biggest leader in the consumer-facing physical AI space, given its leadership with Gemini, the partnership between DeepMind and Boston Dynamics, as well as its autonomous vehicle firm Waymo. In the enterprise, I’d argue Amazon is a top play to buy as its warehouse robots look to do more of the heavier lifting at fulfillment centers, while its autonomous vehicle Zoox quietly gains momentum.
Though I’m skeptical that 2026 will be the prime-time moment year for physical AI (2027-28 might be the year where robots take off), I do think Huang’s comments suggest robots are going to move from sci-fi to reality and fast! And that makes me a big bull on the Mag Seven, especially Alphabet and Amazon.
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