Jensen Huang Just Said $40 Trillion. Here Are 5 Physical AI Stocks Wall Street Is Quietly Loading Up On Before the Rest of the Market Catches On

Humanoid robots and labor automation are framed as a very large total addressable market. Physical AI is presented as potentially larger than major consumer technology categories, with real-world autonomy demonstrated by Waymo. Capital is described as rotating into the trade before broader markets fully price it in. Cognex is highlighted as a machine-vision provider for factories and warehouses, shipping AI vision platforms powered by NVIDIA and Qualcomm, and showing strong revenue growth and earnings beats with upward guidance. NVIDIA is positioned as the core computing and software platform for physical AI, tied to automotive partnerships, a humanoid foundation model, and world-model tools for synthetic training. The focus is on companies supplying the “eyes” and “brain” needed for robots to perceive and decide in real time.

"NVIDIA CEO Jensen Huang has called humanoid robots and labor automation a $40 trillion total addressable market, and on the Animal Spirits podcast, Derek Yan argued physical AI is "potentially bigger" than EVs or smartphones, with Waymo serving as live proof the underlying autonomy stack already works in the wild. Capital is rotating into this trade now, before the broader market has priced it in."

"Robots without vision are paperweights. Cognex ( NASDAQ:CGNX | CGNX Price Prediction) is the machine-vision standard for factory floors and warehouses, and in Q1 it shipped the In-Sight 6900 AI vision platform powered by NVIDIA alongside the In-Sight 3900 powered by Qualcomm. That's the company plugging itself directly into Jensen's Isaac and Cosmos stack at the edge, exactly where humanoid and industrial robots need to see, sort, and decide in real time."

"The numbers tell you Wall Street is already on it quietly. Q1 FY26 revenue hit $268.44 million, up 24.3% year over year, with adjusted EPS of $0.34, beating the $0.25 estimate, and Q2 guidance points to adjusted EPS of $0.40 to $0.44, roughly 68% year-over-year growth at the midpoint. The stock is up 86% year to date as I write this, and the chart looks like a setup that the rest of the market hasn't fully understood yet."

"CEO Matt Moschner put it bluntly: "Our latest AI vision products reinforce our technology leadership and objective of becoming the #1 provider of AI-powered machine vision." If Cognex supplies the eyes, somebody supplies the brain."

Read at 24/7 Wall St.