Citrini Research says that AI-enabled robotics are a budding mega-trend for investors to pay attention to.
The firm, which went viral for a hypothetical AI doomsday scenario, laid out its bullish thesis on robotics as the next growth phase of the AI trade, noting the progress being made in China. It highlighted the World Humanoid Robot Games, held in Beijing in August, as a significant forward leap for the technology.
“Humanoid Olympics may seem like an exercise in the absurd, but really are a top-down strategic effort to push the limits of hardware in a competitive, visible and verifiable setting,” Citrini wrote. “Sending a humanoid at full sprint into a crash wall is literally ‘moving fast and breaking things.’ Scoff at your own risk.”
“Physical AI” is in fact already getting attention in tech and investing circles. Uber founder Travis Kalanick’s physical automation startup Atom is expanding rapidly. Meanwhile, Wall Street forecasters such as Ulrike Hoffmann-Burchardi of UBS are touting the benefits of robotics stocks as a key component of the AI trade.
But Citrini made it clear that it doesn’t think US investors are appreciating the growth potential that robotics offer — or the threat posed by China as it advances toward cornering the market. While the firm acknowledged that the US may be ahead when it comes to software and decision making systems, China has an edge.
The report highlighted strong similarities between today’s robotics market and the booming EV industry of a few years ago.
“It’s running the EV playbook, with the literal same players,” they stated. “Tesla popularized the modern EV and Chinese companies like XPeng replicated.”
Indeed, China’s race to beat the US proved a major development that furthered the global EV boom, as Chinese automakers such as BYD have outsold Tesla and undercut US companies on cost. In June 2026, its CEO revealed plans to start incorporating robots in every showroom that would help sell cars.
Meanwhile, XPeng has gone all in on robotics as well, beginning work on XPeng Iron, its own humanoid robot, intended to rival Tesla’s Optimus. Both XPeng and Tesla have struggled throughout the year, but Citrini likes the Chinese EV stock as a bet on a looming robotics boom.
“XPeng is another EV company with a nascent arm but ~100x cheaper,” the author wrote. “I would bet Optimus is in a better position than Iron today, but just look at history. Xpeng’s EV business is rapidly expanding in part by taking share from Tesla.”