Nvidia shares fall 1.1% amid talks with Foxconn to deploy humanoid robots in factory.

AinvestFriday, Jun 20, 2025 12:25 pm ET
1min read

Nvidia shares fall 1.1% amid talks with Foxconn to deploy humanoid robots in factory.

Nvidia shares experienced a 1.1% decline on June 19, 2025, following news of talks with Foxconn regarding the deployment of humanoid robots in a Houston factory. The potential use of these robots in the production of Nvidia's GB300 AI servers has raised investor concerns [1].

The collaboration between Foxconn and Nvidia is part of a broader effort to integrate humanoid robots into manufacturing processes. Foxconn, a Taiwan manufacturing giant, and Nvidia are exploring the use of these robots to automate tasks such as object handling, cable insertion, and assembly work in the Houston facility. This marks the first time Nvidia products will be manufactured using humanoid robots [1].

Foxconn has been testing humanoid robots and is expected to showcase two new models later this year. The Houston factory is seen as a suitable proving ground due to its newer and larger size compared to existing facilities [1]. The rollout of these robots is expected to transform the manufacturing process and potentially reduce labor costs.

The deployment of humanoid robots aligns with broader industry trends. A UBS report estimates that there will be 2 million humanoid robots at work in a decade and 300 million by 2050, addressing labor shortages and productivity gains in various sectors [2]. Companies involved in global automation, semiconductors, and rare-earth refining are expected to benefit from this trend, with Nvidia being one of the key players.

Despite the potential benefits, the deployment of humanoid robots faces challenges, including AI development, dataset collection, and regulatory hurdles. The report suggests that selling prices and usage costs may fall significantly over the next 20 years due to economies of scale and supply-chain improvements [2].

The market reaction to the news highlights investor concerns about the integration of new technologies into manufacturing processes. Nvidia's stock performance will continue to be influenced by the progress and success of these initiatives, as well as broader market conditions.

References:
[1] https://www.tomshardware.com/tech-industry/semiconductors/nvidia-products-could-be-made-using-humanoid-robots-for-the-first-time-ever-company-in-talks-with-foxconn-to-deploy-them-in-houston-factory-building-gb300-ai-servers
[2] https://www.marketwatch.com/story/300-million-humanoid-robots-are-coming-and-here-are-the-companies-that-will-benefit-04c36ae8

Nvidia shares fall 1.1% amid talks with Foxconn to deploy humanoid robots in factory.

Comments



Add a public comment...
No comments

No comments yet

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.