After a strong push for artificial intelligence, the Trump Administration is now looking to advance humanoid robots. This presents a potential multi-bagger opportunity for risk-tolerant investors.
As noted by Politico, Commerce Secretary Howard Lutnick has been meeting with robotics industry CEOs and is "all in" on accelerating the industry's development. Reportedly, the administration is also considering issuing an executive order on robotics in 2026.
The Department of Transportation is also reportedly getting set to announce a robotics working group, perhaps by the end of the year.
In addition, according to CBInsights.com, "Humanoid robots are moving from science fiction to commercial reality. Companies building these robots attracted a record $1.2B in 2024 funding and are projected to reach $2.3B in 2025, according to CB Insights data."
Humanoid Robots: A Potential $5 Trillion Opportunity
According to Morgan Stanley, humanoid robots could be worth nearly $5 trillion by 2050.
In fact, new analysts from the firm forecast $4.7 trillion in global humanoid revenue by 2050, which the firm said is double the total revenue of the 20 largest automakers in 2024. What's more, while auto revenue could "very well shrink over the next 25 years," analysts estimate that global humanoid adoption will accelerate and reach roughly 1 billion units by 2050, the investment bank said, as noted by CNBC.
In addition, Goldman Sachs says global humanoid robot demand will potentially achieve a $38 billion total addressable market by 2035. Bank of America. believes global humanoid robot shipments will reach 18,000 units in 2025 and 10 million units by 2035.
One of the key growth sectors for robotics is the healthcare sector Humanoid robots could handle tasks such as assisting patients, assisting with physical therapy and rehab exercises, reducing staffing shortages, automating demand tasks, assisting with rescues, performing maintenance and operations.
And that’s only one sector. The potential applications are endless.
The only question now is – how can investors make money from it?
The VanEck Robotics ETF
The VanEck Robotics ETF (NASDAQ: IBOT) replicates the price and yield performance of the BlueStar Robotics index, which tracks companies involved with robotics. Some of its 67 holdings include Nvidia, ASML Holding, Siemens, Autodesk and Teledyne Technologies.
The IBOT ETF is up 29% in 2025 and is trading near its all-time high of $52.88. However, since the fund started trading in April 2023, the IBOT ETF ran from $33.13 to a high of $52.88, a gain of nearly 59%. Now back to $51.65, bulls would like to see it retest the all-time high.
The fund has an expense ratio of 0.47 and pays an annual dividend of 2.17%. The next payout of $1.15 per share will be paid on December 24 to shareholders of record on December 23.
Tesla
Tesla Inc. (NASDAQ: TSLA) continues to be one of the leaders in robotic technology. In fact, robotics is one of the keys to the Tesla bulls’ belief that the real value in Tesla extends beyond its leadership in electric vehicles.
According to Tesla, it's creating a "general purpose, bipedal, autonomous humanoid robot capable of performing unsafe, repetitive or boring tasks. Achieving that end goal requires building the software stacks that enable balance, navigation, perception and interaction with the physical world." It's also known as its Optimus humanoid robot.
In fact, Morgan Stanley believes we'll have about a billion humanoid robots by 2050, which could add a few more 0s to Tesla's current valuation.
Morgan Stanley also noted that companies like Tesla, which control the "brains, bodies, branding and ecosystems" of the humanoid robots, would be able to offer the highest value, as noted by Teslarati.com.
Conclusion
Humanoid robotics are no longer a distant vision – they’re becoming an investable macro trend backed by government support, accelerating corporate capital and aggressive Wall Street forecasts. While risks remain, early participation through diversified exposure like the IBOT ETF or direct innovation plays like Tesla could offer significant upside as the technology scales toward widespread global deployment.
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