3 Picks-and-Shovels Stocks Powering the Humanoid Robotics Buildout

Summary

Humanoid robotics could become one of the market's next major themes. As AI eventually moves out of data centers and into machines that can see, move, and work in the physical world, companies developing humanoid robots will attract enormous attention. But history suggests the more reliable way to play an emerging theme is not betting on which robot maker wins. Instead, it is owning the suppliers every robot needs regardless of who builds it. The picks-and-shovels approach. And with growth equities selling off hard in recent weeks, some of the best-positioned names in the theme are suddenly trading well below their recent highs. Here are three worth watching closely. Get Ambarella alerts:Sign UpAmbarella: The Vision Chips Behind Physical AIAmbarella Today$61.04 -2.26 (-3.56%) As of 10:16 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$48.30▼$96.69Price Target$101.13Ambarella NASDAQ: AMBA designs low-power computer vision and edge AI chips that enable machines to process what their cameras see in real time without relying on the cloud. That capability sits at the heart of any humanoid robot, drone, or autonomous system. The company recently landed a major validation of that positioning: an $800 million edge AI co-development partnership with Hanwha, alongside a wave of bullish analyst coverage, including a street-high $120 price target from Rosenblatt. The stock has fallen almost 14% over the prior week and now trades slightly negative for the year, nearly 29% below its 52-week high. Analysts see that dislocation as an opportunity. The consensus price target of $101.13 from 14 analysts implies nearly 47% upside, and even the Street's lowest target of $80 is well above the current price. It’s worth noting that Ambarella has experienced a steady flow of insider selling over the prior 12 months. From a technical perspective, the bulls will want to see June’s pivot low near $60 hold up as support in July. Ouster: The Eyes of the...