Physical AI Outshines Everything Else: First Hydrogen, XPeng, and Schaeffler Are Benefiting from the "Next Big Thing"

First Hydrogen: A Strategic Shift with Significant Implications

The company's roots lie in the hydrogen sector. Here, the Canadian firm is pursuing an integrated approach, focusing not only on the production of light commercial vehicles powered by hydrogen fuel cells but also on building infrastructure for the production and supply of green hydrogen.

In the hydrogen business, First Hydrogen can look back on a series of successes. Its activities in collaboration with research partners in the field of small modular reactors (SMRs) are also promising. These modular reactors are predicted to have a bright future in light of the rapid rise in electricity consumption driven, among other things, by AI data centers.

The company recently announced a pioneering strategic shift and is consistently implementing its transformation from a hydrogen company to a technology company with multiple future growth areas. Specifically, the focus is on the billion-dollar market for humanoid robotics.

The focus is on the planned acquisition of a 60% majority stake in Exodus Actuation Solutions. The company develops high-precision actuators, electric motors, drive systems, and motion controls, which are essential components of humanoid robots, and holds more than 30 granted and pending patents.
The transaction involves the issuance of 2 million shares as well as an investment of USD 2 million in several stages. This allows the Canadian company to gain access to this massive market at a very moderate valuation. First Hydrogen also founded the subsidiary "First Humaid" with the goal of focusing on intellectual property, robotics, and AI applications.

Humanoid robots consist of dozens of joints. Each of these joints requires an actuator. Actuators combine an electric motor, gearbox, sensors, and control electronics into a compact system. Only through actuators can a robot move fluidly. Actuators can be compared to the muscles of the human body.

The US investment bank Morgan Stanley estimates that the market for humanoid robots will reach USD 5 trillion by 2050 and that around 1 billion humanoid robots will be in use by then. The stock has not yet reacted to these enormous growth opportunities and is trading at CAD 0.45, giving the company a market capitalization of approximately CAD 41 million.

XPeng: China's Answer to Tesla

Tesla is one of the key players in the field of Physical AI and plans to bring its humanoid robot "Optimus" to market. The company is leveraging its existing expertise in autonomous driving and AI software to combine robotics and vehicle technology into a single platform.

The counterweight to the US company is XPeng from China. XPeng not only develops electric vehicles but is also investing heavily in autonomous driving, its own AI chips, and humanoid robots. With "IRON," the Chinese company is developing a humanoid assistant initially intended for use in its own production facilities.

Particularly exciting and promising is the development of a technological platform that combines sensors, cameras, computing power, and AI models, designed for autonomous driving. This platform can also be used for humanoid robots, creating significant synergies.

The stock is currently trading at around USD 12, marking a decline of about 40% since the beginning of the year. Analysts predict that the company will post a loss for the last time in the current fiscal year, followed by dynamic profit growth. Experts estimate an average upside potential of over 80% for the shares.

Schaeffler: A Supplier with Many Partnerships

The German industrial group has decades of experience in precision mechanics and electric drive systems. The company is now specifically applying this expertise to the robotics market. Using a modular actuator platform, Schaeffler is developing intelligent joints for humanoid robots. These combine an electric motor, gearbox, sensors, and control electronics into a compact system.

In addition, the group is collaborating with over 40 robotics companies and plans to supply them with the components it produces. As a supplier, the company thus stands to benefit from the expected broad market growth, regardless of who comes out on top. Furthermore, Schaeffler intends to use the robots in its own production later on. The company has projected an order backlog in the triple-digit million-euro range in the humanoid robot segment by 2030.

Its primary focus as an automotive supplier, along with the associated challenging industry conditions, has recently put pressure on the stock. The share is currently trading at just under EUR 8 per share, valuing the company at around EUR 7.5 billion. Analysts forecast losses for 2026. The outlook is expected to improve in 2027, with a 2027 P/E ratio of 12. Experts estimate the stock's upside potential at around 20%.

Humanoid robots are creating a massive growth market. XPeng is positioning itself in this space with its own model and technology platform. Following the recent price declines, analysts see significant upside potential. Schaeffler has established over 40 partnerships in the field of robotics, thereby creating a strong foundation early on to benefit from the market trend. With its strategic pivot, the planned acquisition of a company, and the establishment of a subsidiary, First Hydrogen also has opportunities to benefit from strong market growth. Given the potential in robotics, the current market capitalization still has room to grow.