UBS says 'physical AI' is here, and shares 3 picks-and-shovels sectors of the market to play the trade.

Business Insider | 03-09-2026 05:54pm |

UBS has identified 'physical AI' as an emerging investment theme, focusing on humanoid robots that can learn through observation. The bank's global head of equities, Ulrike Hoffmann-Burchardi, noted that these robots are moving beyond preprogrammed automation toward genuine physical autonomy. UBS highlighted three picks-and-shovels sectors for investors to consider, including actuators, precision gears, and compute and power infrastructure. This shift represents a new frontier in AI investment opportunities.

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