Chinese Humanoid Stocks Catch Bid As Unitree Pulls Forward Breakthrough Timeline, JPM Turns Uber Bullish

Chinese Humanoid Stocks Catch Bid As Unitree Pulls Forward Breakthrough Timeline, JPM Turns Uber Bullish

Yushu Technology Co., also known as Unitree, surged in its blockbuster IPO before tumbling from late August into early fall. The stock has soared since mid-October as Unitree's earnings come into focus and expectations build that breakthroughs will arrive sooner than previously anticipated.

Unitree shares in China jumped nearly 9% on Wednesday, extending its gains to more than 70% over the past few weeks. A key catalyst behind the renewed buying spree was Unitree CEO Xingxing Wang's prediction that humanoid robot breakthroughs could arrive within two years, much quicker than the previous estimate of a decade.


JPMorgan analyst Karen Li, the head of the bank's Hong Kong equity research and head of Asia infrastructure, industrials and transport research, wrote in her coverage note that her team double-upgraded the stock to overweight.


Here is Li's reason behind the upgrade:

Double upgrade to OW, PT Rmb995 – Physical-AI S curve pulled forward, regulatory scarcity premium extended

The past few days have highlighted just how rapidly the competitive landscape can evolve in disruptive technology sectors, particularly when the industry order remains unsettled and the pace of innovation is accelerating. Our CIIF tour takeaways earlier this week led us to a cautious stance, as we observed Chinese robotics OEMs struggling to translate early hardware leadership into repeatable commercial traction, with execution discipline, monetization, and scenario validation still lagging behind the narrative. At that time, we emphasized that the sector was still in an early commercialization phase, with most demand tied to R&D expansion, developer platforms, and small-batch pilots, rather than broad-based fleet deployment. The burden of proof for sustainable growth and margin durability was high, and we saw the market remaining selective until repeat orders and measurable ROI became visible.

At the 2026 World Physical AI Conference and Partner Ecosystem Conference in Hangzhou, Unitree founder and CEO Wang Xingxing made a pivotal statement, pulling forward his outlook for a physical-AI breakthrough from "up to 10 years" to "2–3 years" or even "1–2 years". This marks a fundamental inflection for the sector, as Wang is widely regarded as one of the most influential voices in China's robotics industry. The industry now appears to be on the cusp of a true intelligence breakthrough, as advances in large-model planning AI and a rapidly expanding developer ecosystem are shifting the bottleneck from high-level reasoning to real-world execution. This acceleration is not merely a change in narrative—it increases the value of near-term platform positioning, installed base, developer ecosystem, and self-evolution capability.

At the same time, public-market scarcity is also likely to remain a valuation support. Regulatory scrutiny around robotics IPOs and spin-offs appears to be rising, with greater emphasis on commercialization quality, sustainable order revenue, and business-model durability. As a result, new public-market supply of embodied-AI comparables may take longer to emerge, extending the scarcity premium for listed leaders such as Unitree. This is particularly relevant as investor demand for direct physical-AI exposure rises and the adoption timeline compresses.

Upgrade to OW: Given these developments, we believe maintaining an Underweight rating is no longer appropriate, but we also recognize that a Neutral stance does not fit the realities of such a fast-moving and structurally volatile sector. While we acknowledge the risk of being wrong—especially given the high volatility and ongoing uncertainty—we are double-upgrading Unitree to OW, with a new PT of Rmb995, implying c.20% upside, as compared to the open day closing price of Rmb845. Our PT corresponds to a 30x FY28E P/S, referencing recent private fundraising rounds including Agility Robotics, while our lift in PT is driven by pulling forward our sales forecasts given the accelerated S curve, with 2028/30 sales now implying c.20%/c.10% global market share, which underpins our more constructive stance. This move reflects our reassessment that Unitree's platform leadership, ecosystem mobilization, and regulatory tailwinds are converging to create a rare window for valuation re-rating. We caution, however, that stock volatility remains elevated and the path forward is unlikely to be linear.

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A broader view of the Chinese humanoid robot industry comes through the Solactive China Humanoid Robotics Index. That index has also begun to recover after peaking in late 2025 and giving up much of those gains from the rally that ran from late 2024 through the end of 2025. The index tracks Chinese humanoid robot developers and suppliers of related technologies, including AI, motion controls, precision actuators and automation systems. Even Unitree's August IPO failed to arrest the decline, making the latest rebound worth watching.


Latest reports:

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Notably, China accounted for 97% of global humanoid robot shipments in the first six months of the year. Wang said last week that Unitree would expand production capacity to meet potential demand for tens of millions of machines. All indications suggest physical AI is in its early innings.

Tyler Durden Wed, 10/28/2026 - 09:30

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[ H/T ZeroHedge ]