Mon, Aug 18, 2025|Sean Michael Cummings

Robotics Stocks Soar as Robots Hit the 'Gym'

"The next era of AI is 3D..."

That's according to Aaron Lefohn, vice president of graphics research at Nvidia.

Last Monday, Lefohn spoke to the artists gathered at the SIGGRAPH computer-graphics conference. His presentation detailed a new breakthrough in ultrarealistic 3D graphics, made possible by Nvidia chipsets...

Nvidia has taught an artificial-intelligence ("AI") model to infer what a frame might look like based on just a handful of pixels in a scene. This "neural shading" technology can create complex digital images and textures for a fraction of what it costs now.

In his presentation, Lefohn showed the following image comparing a traditional digital artist's depiction of velvet (on the left) with a neural shader's depiction (on the right)...

As you can see, the image on the right shows a far higher level of detail. Now, a skilled 3D artist could certainly build the multilayered velvet image. But it would require 20 times the resources needed for the single-layer image.

A human artist could never hope to maintain that level of detail in a dynamic environment... but neural shading makes it possible.

This "3D era" Lefohn described holds promise for the future of digital art. But it won't stop there...

That's because Nvidia also intends to use its new graphics tech to bring digital AI into the world of robotics. And the market is starting to take notice of this new trend...

Let me explain...

The Demand for Robot Gyms

Last week, my colleague Chris Igou wrote about his experience ringing the opening bell of the Nasdaq alongside a humanoid robot...

That robotic bell-ringer was the Unitree G1 Ultimate from the Chinese company Unitree Robotics.

The Unitree G1 can run, use tools, and even do kung fu. And it owes these skills to extensive training that starts before the G1 gets built.

See, robots can't really learn much from human-written code. They need real-world experience to build on their mistakes...

But training a robot in a physical space is challenging and expensive. One wrong move could seriously damage the test subject, its environment, or its observers.

So virtual engineers are building "robot gyms," ultrarealistic 3D worlds where robots are free to mess up.

In these gyms, a robot can make mistakes without incurring real-world costs. The simulations are very similar to the world-model-based AI training I wrote about last week.

The problem is, current robot gyms only offer an approximation of physical reality. For example, a simulated vehicle changing lanes might create "artifacts," or digital after-images of earlier frames.

But with neural shading, virtual gyms will become much easier to build – and give much more accurate data.

In short, robot training is getting ready to speed up by orders of magnitude.

Neural shaders are the starting point for a robotics revolution. And the market is already taking notice...

Robotics Stocks Are Trending Higher

We can see this using the Robo Global Robotics and Automation Index Fund (ROBO).

This fund tracks a global index of companies involved in robotics. And it acts as a stand-in for the entire robotics sector.

ROBO is already on a tear – the fund has beaten the S&P 500 Index by more than 15 percentage points since the April bottom.

And its recent price action suggests a big move higher is on the way...

Since December 2022, ROBO has been stuck in a trading range. This means that the price has bounced back and forth between roughly the same levels for nearly the past three years.

Range-bound trading indicates indecision. Neither buyers nor sellers can assert an advantage... So prices waver between two poles.

But once prices exceed their trading range, they tend to keep rising... and that's exactly what we're seeing with robotics. Take a look...

ROBO broke out of its trading range in July to hit its highest level since 2022.

This move shows that the indecision is over. The bulls have won this round... and that momentum is likely to carry on into the future.

Robots are no longer the stuff of science fiction. This tech is ready for prime time. We're likely at the foothills of a massive robotics bull run.

Don't miss your chance to invest as this seismic industry comes to life. Buy robotics companies today.

Good investing,

Sean Michael Cummings

Robotics Stocks Soar as Robots Hit the 'Gym'

The Demand for Robot Gyms

Robotics Stocks Are Trending Higher

Further Reading