MoraanStanlev:RESEARCHFOUNDATIONDecember19,202505:01AMGMTMORGANSTANLEY&CO.LLCRobotics|North America,AdamJonas,CFAEquityAnalystAdam.Jonas@morganstarley.comHumanoidHorizons:What toMORGANSTANLEYASIALIMTTED+Watchfor2026ShengZhongSheng.Zhong@morganstanley.com+8522239-7821 While humanoid excitement continues to hit new highs headingMORGANSTANLEY&CO.LLCWilliamTackett,CFAinto 2026. we remind investors to see the bigger picture. Thereorganstanley.com+1212761-6028may be asignificant gap between a robot that dancesvs. arobotAndrewSPercocothat can do useful work at scale. The vear ahead wil include itsAndrew.Percoco@imorganstaniey.comshare of progress and challenges.Somethoughtsonwheretheindustryisheaded in2026, andsome wordsofCarlosChaiadvice:+8523963-3180Near Term Humanoid 'Hype'Has More to Run.A number of key catalystsMORGANSTANLEY&CO.LLODaniela M Haigianotentialsupportivepolicv from the currentUSela.Haigian@morganstariey.com+1212761-6071urther tech breakthroughs (both hardware and A), andMORGANSTANLEYASIALIMITED+essagingfrom big tech andAl plaverson a potential entrvintorobotics/Serena Chenphvsical Al. Humanoid enthusiasm wil likelv come in waves and the nextrganstanley.com+8522848-7107freset'willbe driven bya combination of recogntionofdiffculties oflsea Wangdeveloping physical AI models, manufacturing hurdles, and a shakeout ofEquityAnalystJinin.Wang@morganstanley.com+8522239-1118tNo+ Clasdy Advartized Otherwise.HumanoidIf a humanoid demo is not explicitly advertized assume tstleos. To getautonomous robots.,robots for training, data collection, etc. Usingisnot necessarilyaredflag.but2026isnot theveartoearobot is autonomousAtLeast1NewBigTechCompany orMajorAlLabWillUInveilRoboticPlans.Meta, Google,Apple.Amazon,OpenAl,Baidl, Huawei, and anumbernd/or humanoids.As companiessearchfornew TAMs toiustifv theirAlreporter, discussed how'speed' and the potential for bubles' need to bebalanced forall merging industies, including in the countrys humanoierobotics industry, with investment pouring in despite few proven real-worldsand over 15O comoanies now in the soace Exoect further guidancinthe 15th Five-Year Plan (to come in March), As global robotics companieshove out of the lab and into the real world, winners and laggards wiledby non-U.S.affliatesae notreqisteredsons of the membemblicappearances
FOUNDATIONchops, manufacturing know-how, and adoption potental·New SupportivePolicyforUS Robotis. Acording to recent Polticnreporting.Howard Lutnick and the Trump admin are apparently"'allin'onhgUSrobotics with a potential executive order in consideration fordless of the odlicv outcomes (taxsubsidies, govt acquisitionetc.), we'd expect the US government to usesignal support for the domestic robotics industry toechnological development-similar toesctedin the Octoberecommendations foruntryseekstocompete withthe USon Aland consumer electronics company isAl enabled robots. Based on our discussionsap between the US and China is widening at an。For acopy ofourGlobal.Robot.Modelwithfprecstsacrosth fullrangeof embodied ...
