15 Physical AI Stocks To Watch In 2026 As Robots And Autonomy Scale Globally

For the past two years, AI lived mostly on our screens. It wrote text, generated images, summarized documents, and answered questions.

That's changing fast.

A new phase is emerging: Physical AI — intelligence embedded in machines that can see, reason, and act in the real world.

Robots assembling cars. Cars driving themselves. Drones delivering packages. AI is no longer just thinking.

Bank of America's thematic investing team, led by analyst Martyn Briggs, sees this as a trillion-dollar transformation already underway.

The bank notes that value is shifting from digital models to physical machines — robots, autonomous vehicles, drones — that are starting to scale and operate in the real world.

"Intelligence moves from screens to machines," Briggs said in a report released Thursday.

Nvidia CEO Jensen Huang agrees.

"The ChatGPT moment for physical AI is here — when machines begin to understand, reason, and act in the real world. The next wave of AI is physical AI," Huang said at CES 2026.

What Makes Physical AI Different?

The first wave of AI focused on content creation and chatbots; the next wave embeds intelligence in the physical world.

Bank of America defines Physical AI as systems in machines like humanoid robots, autonomous vehicles, and drones, capable of perceiving environments, reasoning, and executing actions. These systems use multimodal world models, trained with both vision and action data, to predict, plan, and operate autonomously.

Robotaxis are already operational in multiple cities, and advanced driver-assistance systems are set to reach mass adoption in China by 2030.

As hardware costs fall and onboard computing improves, removing drivers will significantly reduce costs in ride-hailing and freight, transforming mobility into a software-defined, AI-driven platform.

Humanoid Robots Move Into Production

“Humanoid robots have emerged as the most visible frontier of this shift,” Briggs wrote.

More than 50 companies are now developing humanoid platforms, with early deployments focused on manufacturing, logistics, and hazardous tasks.

Shipments are expected to grow from tens of thousands today to millions annually over the next decade — driven by labor shortages, falling component costs, and vertical integration.

The winners won't just build robots. They'll control actuators, sensors, energy efficiency, and the AI stack that ties it all together.

15 Physical AI stocks to watch

Bank of America highlighted several public companies exposed to Physical AI across chips, robotics, mobility, and sensing. Here are the 15 publicly traded ones that analysts believe will lead the charge.

1. Nvidia Corp. (NASDAQ:NVDA)

Considered the undisputed leader in Physical AI infrastructure, Nvidia's full-stack platform spans robotics, mobility, and industrial applications. CES 2026 launches included GR00T and Cosmos, enabling autonomous reasoning across machines.

2. Tesla Inc. (NASDAQ:TSLA)

With robotaxis now operating in nine cities, Tesla is scaling both AV fleets and licensing its Full Self-Driving software. Weekly ride volumes tripled in 2025.

3. Qualcomm Inc. (NASDAQ:QCOM)

Its Dragonwing IQ10 system-on-chip powers physical AI at the edge. Qualcomm enables low-power decision-making for drones, robots and AVs beyond the cloud.

4. Advanced Micro Devices Inc. (NASDAQ:AMD)

AMD's open AI ecosystem (ROCm) and scalable hardware are key alternatives to Nvidia, targeting both cloud training and edge inference markets.

5. Ambarella Inc. (NASDAQ:AMBA)

Pioneer in power-efficient AI video chips. Its CES demonstrations showed AI-optimized SoCs capable of real-time vision and reasoning in constrained environments.

6. ARM Holdings plc (NASDAQ:ARM)

With embedded chips everywhere from smartphones to robots, ARM is enabling physical AI to run on-device, reducing latency and power drain.

7. Hitachi Ltd. (OTC:HTHIY)

Hitachi's HMAX AI stack integrates operational and sensor data to improve uptime, control and prediction in mobility, infrastructure and cybersecurity.

8. Innoviz Technologies Ltd. (NASDAQ:INVZ)

A LiDAR supplier benefiting from an over 99% cost decline since 2019. Innoviz is helping expand AV and robotics beyond R&D into real-world deployment.

9. BYD Co. Ltd. (OTC:BYDDF)

China's smart EV leader. Its ADAS penetration is surging, with "God's Eye" navigation tech deployed in high-end models and L2+/L3 systems scaling fast.

10. Alphabet Inc. (NASDAQ:GOOGL)

Waymo's robotaxis are scaling rapidly with hardware cost reductions of 50–70%. Commercial activity is intensifying across U.S. urban markets.

11. Baidu Inc. (NASDAQ:BIDU)

Apollo's fleet is part of China's 400,000-unit robotaxi roadmap by 2030. Baidu is positioned as a dominant AV software stack provider in Asia.

12. AeroVironment Inc. (NASDAQ:AVAV)

Its UAS (Unmanned Aircraft Systems) dominate in tactical drone markets. Defense and public security demand are accelerating with drones deployed in both surveillance and disruption roles.

13. Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS)

Specializes in autonomous defense tech and simulation. Kratos offers high-performance, low-cost systems critical for modern military AI operations.

14. Apple Inc. (NASDAQ:AAPL)

Still a dark horse, Apple's on-device AI chips, spatial computing stack, and long-rumored Project Titan hint at ambitions far beyond phones.

15. Li Auto Inc. (NASDAQ:LI)

A leading Chinese automaker, Li Auto is rapidly integrating advanced L2+ autonomy features and is expected to join China's AV expansion wave.

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