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Robotics May Be Alphabet’s (GOOGL) Next Big Bet, Says Baird

Alphabet Inc. (NASDAQ:GOOGL) is one of the top 10 picks from Harvard University’s stock portfolio. The stock’s position in the portfolio was marginally up in Q1, and it accounted for around 9.8% of the portfolio weight.

Following the Computer Vision and Pattern Recognition (CVPR) conference held in mid-June, Baird’s analyst Colin Sebastian published a note on June 20 highlighting a potentially underappreciated area of growth for Alphabet: robotics. While the company is best known for its core businesses in Search, YouTube, Android, Cloud, and hardware, Sebastian believes its efforts in robotics AI, particularly through DeepMind, could become a meaningful contributor over time.

Google introduced its new Gemini Robotics AI stack at the event, designed to support physical robots capable of language understanding, visual processing, and real-world decision-making. Unlike current industrial robots, which are built for specific tasks, the next wave, enabled by systems like Gemini, aims to handle a broader range of functions with greater adaptability. The analyst compared the upcoming opportunity to the ‘ChatGPT moment’ for robots.

Sebastian pointed out that the Gemini platform incorporates what he refers to as “embodied reasoning”, allowing the same software stack to be deployed across multiple hardware form factors. Demonstrations included robots performing nuanced actions such as folding paper or finding objects, tasks that require a deeper level of contextual understanding than traditional automation.

He believes this technology could play a foundational role as physical AI adoption accelerates, potentially evolving into a core platform alongside Android and Google Cloud. While still early, the long-term market opportunity, estimated by some to be over $100 billion, positions Alphabet as a potential leader and a “key enabler” in a rapidly emerging space that may include competition from companies like OpenAI, Amazon, Meta, and Tesla.

Given this potential, Sebastian reiterated his Outperform rating on Alphabet shares and maintained a price target of $190.

Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware. The company is also a leading investor in data centers and fiber networks, operating a vast global network of data centers that support its cloud services and other digital offerings.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Best Tech Stocks to Buy According to Billionaires.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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