For the previous 2 years, AI lived mainly on our screens. It composed text, created images, summed up files, and responded to concerns.
That’s altering quickly.
A brand-new stage is emerging: Physical AI– intelligence embedded in devices that can see, factor, and act in the real life.
Robotics putting together vehicles. Automobiles driving themselves. Drones providing plans. AI is no longer simply believing.
Bank of America’s thematic investing group, led by expert Martyn Briggs, sees this as a trillion-dollar improvement currently underway.
The bank keeps in mind that worth is moving from digital designs to physical devices– robotics, self-governing lorries, drones– that are beginning to scale and run in the real life.
” Intelligence moves from screens to devices,” Briggs stated in a report launched Thursday.
Nvidia CEO Jensen Huang concurs.
” The ChatGPT minute for physical AI is here– when devices start to comprehend, factor, and act in the real life. The next wave of AI is physical AI,” Huang stated at CES 2026.
What Makes Physical AI Different?
The very first wave of AI concentrated on material production and chatbots; the next wave embeds intelligence in the real world.
Bank of America specifies Physical AI as systems in devices like humanoid robotics, self-governing lorries, and drones, efficient in viewing environments, thinking, and performing actions. These systems utilize multimodal world designs, trained with both vision and action information, to anticipate, strategy, and run autonomously.
Robotaxis are currently functional in several cities, and advanced driver-assistance systems are set to reach mass adoption in China by 2030.
As hardware expenses fall and onboard computing enhances, eliminating motorists will substantially lower expenses in ride-hailing and freight, changing movement into a software-defined, AI-driven platform.
Humanoid Robotics Move Into Production
” Humanoid robotics have actually become the most noticeable frontier of this shift,” Briggs composed.
More than 50 business are now establishing humanoid platforms, with early implementations concentrated on production, logistics, and dangerous jobs.
Deliveries are anticipated to grow from 10s of thousands today to millions each year over the next years– driven by labor lacks, falling element expenses, and vertical combination.
The winners will not simply construct robotics. They’ll manage actuators, sensing units, energy performance, and the AI stack that ties everything together.
15 Physical AI stocks to see
Bank of America highlighted numerous public business exposed to Physical AI throughout chips, robotics, movement, and picking up. Here are the 15 openly traded ones that experts think will lead the charge.
1. Nvidia Corp. (NASDAQ: NVDA)
Thought about the undeniable leader in Physical AI facilities, Nvidia’s full-stack platform covers robotics, movement, and commercial applications. CES 2026 launches consisted of GR00T and Universe, allowing self-governing thinking throughout devices.
2. Tesla Inc. (NASDAQ: TSLA)
With robotaxis now running in 9 cities, Tesla is scaling both AV fleets and certifying its Complete Self-Driving software application. Weekly trip volumes tripled in 2025.
3. Qualcomm Inc. (NASDAQ: QCOM)
Its Dragonwing IQ10 system-on-chip powers physical AI at the edge. Qualcomm allows low-power decision-making for drones, robotics and AVs beyond the cloud.
4. Advanced Micro Gadgets Inc. (NASDAQ: AMD)
AMD’s open AI environment (ROCm) and scalable hardware are crucial options to Nvidia, targeting both cloud training and edge reasoning markets.
5. Ambarella Inc. (NASDAQ: AMBA)
Leader in power-efficient AI video chips. Its CES presentations revealed AI-optimized SoCs efficient in real-time vision and thinking in constrained environments.
6. ARM Holdings plc (NASDAQ: ARM)
With ingrained chips all over from mobile phones to robotics, ARM is allowing physical AI to run on-device, minimizing latency and power drain.
7. Hitachi Ltd. (OTC: HTHIY)
Hitachi’s HMAX AI stack incorporates functional and sensing unit information to enhance uptime, control and forecast in movement, facilities and cybersecurity.
8. Innoviz Technologies Ltd. (NASDAQ: INVZ)
A LiDAR provider taking advantage of an over 99% expense decrease because 2019. Innoviz is assisting broaden AV and robotics beyond R&D into real-world implementation.
9. BYD Co. Ltd. (OTC: BYDDF)
China’s clever EV leader. Its ADAS penetration is rising, with “God’s Eye” navigation tech released in high-end designs and L2+/ L3 systems scaling quickly.
10. Alphabet Inc. (NASDAQ: GOOGL)
Waymo’s robotaxis are scaling quickly with hardware expense decreases of 50– 70%. Business activity is magnifying throughout U.S. metropolitan markets.
11. Baidu Inc. (NASDAQ: BIDU)
Apollo’s fleet becomes part of China’s 400,000-unit robotaxi roadmap by 2030. Baidu is placed as a dominant AV software application stack service provider in Asia.
12. AeroVironment Inc. (NASDAQ: AVAV)
Its UAS (Unmanned Airplane Systems) control in tactical drone markets. Defense and public security need are speeding up with drones released in both security and disturbance functions.
13. Kratos Defense & & Security Solutions Inc. (NASDAQ: KTOS)
Concentrates on self-governing defense tech and simulation. Kratos uses high-performance, low-priced systems crucial for contemporary military AI operations.
14. Apple Inc. (NASDAQ: AAPL)
Still a dark horse, Apple’s on-device AI chips, spatial computing stack, and long-rumored Job Titan mean aspirations far beyond phones.
15. Li Car Inc. (NASDAQ: LI)
A leading Chinese car manufacturer, Li Car is quickly incorporating sophisticated L2+ autonomy functions and is anticipated to sign up with China’s AV growth wave.
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