JPMorgan names beneficiaries of bet on humanoid robots: four companies from China

JPMorgan Chase has named stocks of humanoid robot manufacturers worth buying amid Elon Musk's betting on this technology and linking Tesla's future to it. Wall Street's largest bank drew attention to several players in China that could be key beneficiaries of the trend.

JPMorgan singled out four Chinese companies, giving their stocks an "above market" (overweight) rating: UBTech Robotics, Zhejiang Sanhua Intelligent Controls, Leader Harmonious Drive Systems and Jiangsu Hengli Hydraulic. The shares of these players are well positioned to benefit "from the sector's transformation and increased demand for advanced robotics solutions," CNBC reported, citing a Sept. 4 research note from the investment bank.

"The year 2025 was a pivotal year for the humanoid robot industry: order volumes and contract values increased dramatically, shifting the market focus from purely R&D to actual delivery and application capabilities," JPMorgan analysts emphasized. According to them, now the future of the industry of humanoid robots depends not only on developments in laboratories, but also on how the developers themselves will fight for customers and bring their products to the market. In March of this year, CNBC reported that Chinese companies have begun to outpace U.S. competitors, especially in commercialization and pricing.

Tesla CEO Elon Musk said this week that Optimus robots will eventually provide about 80% of his company's market value. The ambitious prediction came as UBTech received the world's largest single order for humanoid robots, worth $35 million.

Tesla 's new master plan (Master Plan IV) reflects the electric car maker's strategic pivot toward artificial intelligence and robotics, while new car development is barely mentioned, Benzinga notes. But Musk's focus on robotics coincides with serious problems in Tesla's core business. In July, deliveries of the company's electric cars in Europe plummeted 40%, while Chinese BYD's shipments soared 225%. In response, Tesla cut prices on the Model 3 Long Range in China and launched a used car leasing program in the U.S. with zero down payment.

Ross Gerber of investment firm Gerber Kawasaki questioned Musk's strategy. "If people don't buy his cars, why should they buy a giant robot from him for their house? Or ride in his cabs? Especially when there are other/better options," he wrote on social media X.

UBTech shares are traded in Hong Kong. Sanhua Intelligent, Leader Drive and Hengli Hydraulic are listed on mainland Chinese exchanges in Shanghai and Shenzhen, which makes it difficult to buy them from abroad (foreign retail investors in China have no direct access to shares traded on the mainland in yuan).

UBTech's share price has almost doubled since the beginning of 2025. Sanhua Intelligent, Leader Drive and Hengli Hydraulic have risen by 31%, 36% and 67%, respectively. According to FactSet, the vast majority of analysts - 22 out of 24 - advise buying Sanhua Intelligent shares (Buy and Overweight ratings). The service does not track investment ratings on UBTech, Leader Drive and Hengli Hydraulic.

Tesla shares have fallen in value by 16% this year. In recent months, analysts on average do not consider them an attractive investment, but they do not advise to sell them yet either (consensus rating Hold). The average target price of $313.9 per paper calculated by FactSet implies a 7% decline in Tesla's stock price over the next 12 months.

This article was AI-translated and verified by a human editor