China's backflipping humanoid robotics firm Unitree soars on IPO: How else to position for the robotics revolution

The robots are coming; Shares of Chinese humanoid robotics firm Unitree soared on debut as investors scrambled for a piece of the nascent industry that has few major listed companies.

Shares in the backflipping robot maker surged as much as 629% on their Shanghai debut, closing around 460% above the IPO price. The company raised about $900 million, but retail demand exceeded the shares available by several thousand times

Trading on Shanghai’s STAR Market it's not an easy stock to access from the UK. However, there are other ways investors can position for the humanoid robotics revolution.

Humanoids are a rare breed

In terms of humanoid robots, there are slim pickings for investors globally. That probably explains the huge excitement around Unitree – quite apart from its backflipping humanoid robots being at the forefront of the tech, there is not a lot else.

Tesla is developing its Optimus humanoid but has so far preferred to show this with a guy dressed in a suit, while Hyundai-owned Boston Dynamics remains private. China has Unitree, but also UBTech and a rapidly expanding collection of privately owned manufacturers. Several other Chinese humanoid robotic firms are preparing to go public, including Deep Robotics and Leju Robotics.

Among US-listed stocks that UK investors can access easily, companies like Serve Robotics and Richtech Robotics on a broader range of autonomous solutions rather than pureplay humanoid robots. WeRide, another in the robotics space, develops autonomous driving tech that its CEO compared to Tesla's FSD.

Robotics remains a frontier play with uncertain outcomes for companies at the coalface, particularly in the field of humanoid robots. However, there is a broader thematic play in terms of autonomy, AI and automation.

The picks-and-shovels approach

Investors can look around the companies supplying the industry. This approach is less dependent on any one finished robot succeeding. This is the broadest way to play the theme.

For example,

• Nvidia or Arm for computing

• Keyence for sensors and machine vision

• Yaskawa for motors and controls

• Harmonic Drive or Nabtesco for precision components

• Siemens or Rockwell for industrial software and automation

Computing: Obviously robots need compute and Nvidia is the most obvious beneficiary: its chips are used for training AI models, while its Jetson computing platform and robotics software help robots process information and make decisions in the physical world. Other semiconductor companies supply the microcontrollers, connectivity, analogue chips and power-management systems required inside robots. These include Arm, Qualcomm, Texas Instruments, Infineon and STMicroelectronics.

Components: Robots need precision parts capable of translating software commands into movement. This creates opportunities for manufacturers of servo motors, drives, reducers, sensors and machine-vision equipment. Japan is particularly strong here. Keyence supplies sensors and machine-vision systems; Harmonic Drive and Nabtesco produce precision gears and reducers; SMC makes pneumatic equipment; while Yaskawa manufactures servo motors, controls and complete industrial robots.

Automation: Fanuc and Yaskawa of Japan, Siemens of Germany and Rockwell Automation of the US provide investors with exposure to the established market of industrial robots. In healthcare, Intuitive Surgical already has a successful robotics business through its da Vinci surgical systems. I'm not even going to mention Ocado.