Jensen Huang strongly supports "Physical AI," and Goldman Sachs has sorted out the listed companies

While tech giants like Tesla and Nvidia are still immersed in the virtual world of AI models, a new wave has quietly emerged—Physical AI. This is not some ethereal concept, but a technology that enables machines to truly perceive, interact with, and change the physical world.

Goldman Sachs, in a research report on March 3, conducted a thorough search in the fields of autonomous driving, robotics, and key technologies connecting intelligent machines, selecting a group of companies they believe have the most potential in Physical AI.

What is Physical AI?

Physical AI, also known as generative physical AI, is a technology that enables autonomous machines (such as robots and self-driving cars) to perceive, understand, and execute complex operations in the real physical world.

It extends traditional generative AI to understand the spatial relationships and physical behaviors of the 3D world. Simply put, the content generated by artificial intelligence must conform to the laws of physics.

For example, in text-to-image or text-to-video models, if physics is not considered, the generated content will lack details such as gravity and optics. After incorporating physical knowledge, the generated content will be more realistic.

Physical AI will endow robots with stronger environmental perception, understanding, and interaction capabilities. Traditional robots can only execute tasks according to preset programs, while robots equipped with Physical AI can better understand their surroundings and respond according to physical laws. They can better recognize objects, predict motion trajectories, and navigate and operate in complex environments.

Jensen Huang emphasized earlier this year that “the new wave of AI is Physical AI,” and “Physical AI will fundamentally change the $50 trillion manufacturing and logistics industries.”

Autonomous Driving: Who Will Lead the Smart Mobility Revolution?

According to Goldman Sachs, autonomous driving, AI equipment, robotic automation, and infrastructure and support are currently the most important areas for the application of Physical AI.

In the field of autonomous driving, Goldman Sachs named companies such as Uber, Pony.ai, BYD, Li Auto, Xiaomi, and Baidu.

Uber is collaborating with Waymo, a subsidiary of Alphabet, to launch autonomous ride-hailing services in Austin and Atlanta by 2025. Goldman Sachs believes that investors are overly concerned about the impact of autonomous driving on the ride-hailing business, and the industry will move towards a human-machine hybrid model in the future.

Pony.ai, as a leader in the Chinese robotaxi sector, is actively advancing its commercialization process. Goldman Sachs expects that with the expansion of the robotaxi fleet and the contribution of solution licensing fees, Pony.ai will achieve a 27% compound annual growth rate from 2024 to 2027 and turn EBITDA and net profit positive by 2030.

BYD is committed to popularizing high-speed NOA (Navigation On Autopilot) and valet parking functions across more vehicle models to consolidate its competitive advantage in the intelligent driving field.

Equipment Race: Who is Building AI's "Arsenal"?

The AI equipment sector is equally exciting. Goldman Sachs is optimistic about companies such as Horizon Robotics, Aptiv (Mobileye Global), AAC Technologies, and Quanta Computer.

In Goldman Sachs' view, Horizon Robotics is a leader in the Chinese ADAS/AV field and a key supplier for BYD. Aptiv, with its leadership position in the ADAS sector, is expected to capture a larger market share among Western OEM manufacturers.

AAC Technologies, as a camera sensor manufacturer, is actively expanding its high-margin automotive business, including vehicle lenses and cameras for ADAS. Quanta Computer plans to provide more ADAS/AV controllers for global automotive OEM manufacturers in 2025 and 2026.

Robotics and Automation: Who Will Usher in the "Robot Butler" Era?

In the robotics and automation field, Goldman Sachs is focusing on companies such as Harmonic Drive Systems, Yaskawa Electric, SMC Corporation, and Shenzhen Inovance Technology.

Harmonic Drive Systems is a leader in the global small precision gearbox market, with its products widely used in the upper body of humanoid robots. Yaskawa Electric is further enhancing automation levels by developing the dual-arm robot MOTOMAN NEXT.

SMC Corporation is expected to become an important player in the actuator assembly business for humanoid robots, while Shenzhen Inovance Technology is leveraging its advantages in servos, inverters, and other fields to develop various components for humanoid robots.

Infrastructure and Support: Who is Providing the "Fuel" for AI?

The development of AI relies on strong infrastructure support. Goldman Sachs is optimistic about companies such as Belden, Flex, Jabil Circuit, TE Connectivity, Amphenol, Dassault Systemes, Prysmian, and Legrand. These companies play a critical role in data centers, power, cabling, and industrial automation, providing the necessary "fuel" for the operation and development of AI.

Belden focuses on providing high-margin solutions to help customers unify operations and monitor machines from different manufacturers. Flex continues to drive growth and margin improvement through its data center and EMS + strategy. Jabil Circuit collaborates with more OEM manufacturers in the automotive sector to meet their goals in AV, connectivity, electrification, and software-defined vehicles (SDV)