In recent months, the emergence of Yu Tree's wheeled robotic dog and the DeepSeek-V3 has reshaped conversations within the AI community, serving as a testament to the rapid advancements of Chinese AI technologyCaptivating the industry’s attention, a creatively choreographed dance program featured at China’s Spring Festival gala has sparked significant interest in humanoid robots, further underscoring their potential.

As trading resumed after the Spring Festival, the AI sector witnessed a surge, with robotics stocks leading the chargeAccording to Wind data, the robotics index has increased by approximately 24.29%, with the Citic Robotics Index experiencing a rise of around 25.18% this year aloneThis upward trajectory has led to substantial performance gains among funds focused on robotics themesComprehensive analyses show that among publicly offered equity funds, the top six performers in terms of yields are all robotics-themed funds, each boasting returns exceeding 50%. Topping the list is the Penghua Carbon Neutrality Theme Fund, which has achieved an impressive over 60% return thus far.

Yuan Siqian, the fund manager for the Penghua Carbon Neutrality fund, highlighted the growing consensus around technology stocks in the AI era, particularly emphasizing robotics for two main reasonsFirstly, she noted that as we navigate this significant opportunity presented by AI, there is a global resonance where China’s technological advancement is flourishingDeepSeek stands out for democratizing computational power, marking the advent of the AI+ eraThis is creating opportunities across various sectors—from industrial applications to consumer technologies, healthcare, and intelligent drivingInvestments are flowing from tech giants to local shops utilizing DeepSeek technology, illustrating a blossoming AI ecosystem.

The second factor elevating optimism around robotics is the industry’s colossal untapped potential, which she likens to a shift from "0 to 1". The trajectory for the humanoid robotics sector indicates a newfound opportunity for China to leapfrog its competitors and take a leadership position globally.

During a meeting of private enterprises on February 17, 2025, the Director of Yu Tree Technology, Wang Xingxing, emphasized the implications of these advancements

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At the 2025 Spring Festival gala, 16 humanoid robots developed by Yu Tree collaborated with 16 performers from Xinjiang Art Institute in a creative dance piece directed by Zhang Yimou, showcasing an array of more than 130 dynamic movements, such as arm rotations and body movements, which allowed the robots to harmonize with the music's rhythm, reflecting the remarkable progress in domestic humanoid robot technology.

In October 2024, industry leaders and organizations united to launch the first set of standards for humanoid robot embodied intelligence in a nationwide effort to bolster innovationIn January 2024, a significant push was made in fortifying advanced equipment manufacturing while simultaneously overcoming challenges posed by humanoid robotics to fuel technological industrialization and creating a leading high-end equipment system globally.

The backdrop of discussions across national platforms has become increasingly focused on the outlook for humanoid robotsRecent communications have outlined that humanoid robots could soon emerge as disruptive products on par with computers, smartphones, and electric vehicles, profoundly altering human lifestyles and reshaping the global economic landscape.

Looking at the industry pipeline, research from Morgan Stanley categorizes the humanoid robotics supply chain into three core segments: "Brains", "Bodies", and IntegrationThe report mentions that international firms dominate the realm of generative AI models and core chip components, representing the key players in the "Brain" segment, while China’s advantages lie in the manufacturing of the "Body" due to its robust manufacturing ecosystem and cost efficiency.

DeepSeek's role is pivotal in lowering costs associated with developing large models, thus enhancing research and development efficiency, which is anticipated to propel the growth of the robotics industryAs that supply chain advantage becomes pronounced in the hardware segment, local component suppliers are expected to experience rapid scaling, bolstered by the global leaders in the field

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Additionally, progress in domestic AI technologies combined with DeepSeek’s open-source nature might further diminish entry barriers in the "Brain" segmentAny significant advancements in embodied AI and the rollout of domestic chips could provide significant catalysts for growth in the software domain.

Shed Cheng, a fund manager at Hua Fu Technology Dynamic Fund, remarked on the close correlation between the buoyancy of the robotics sector and the success of DeepSeek, suggesting that the practical application of robotic technologies will heavily rely on the capabilities of large model performanceThe iterative upgrades of DeepSeek exemplify a tech breakthrough, substantially enhancing robots’ intelligent features and multi-modal sensory abilitiesThese enhancements support robots in achieving more precise environmental awareness and target identification, driving optimized decisions and actions.

Moreover, the reduced training costs associated with DeepSeek allow companies to channel resources into additional facets of robotic development and manufacturing, which could accelerate the industry’s technological evolution and commercialization timelinesFrom an investment outlook perspective, the successful deployment of DeepSeek has reinforced investor confidence in China’s AI capacity, subsequently brightening prospects for domestic robotics firms.

The thriving performance of funds dedicated to robotics can be attributed to the explosive growth of both AI and robotics sectors, with notable gains reportedBy February 19, 2025, out of the 832 robotics-themed funds available in the market, 172 had achieved returns exceeding 10% year-to-dateThe standout funds included the Penghua Carbon Neutrality Theme Fund, with share classes A and C yielding returns of 61.78% and 61.65%, respectivelyOther notable mentions are the Yongying Advanced Manufacturing Smart Selection Funds, showcasing yearly returns of 58.55% and 58.47%.

Such stellar performances from fund managers are often a product of rigorous groundwork prior to the market’s upturn, involving intricate explorations of the robotics sector, which ultimately positions their funds for significant gains during peak market conditions.

Cheng further revealed that by the conclusion of 2024, the Hua Fu Technology Dynamic Fund intends to strategically position themselves within all aspects of the humanoid robotics market—incorporating chassis, actuators, sensors, and various fundamental components to optimally align with industrial developments

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Their investment philosophy merges top-down insights with a bottom-up selection approach, ensuring a well-balanced portfolio that capitalizes on established leaders while identifying high-potential 'dark horse' contenders.

Representatives from AVIC Fund conveyed their belief that advancements in large models symbolize not merely software breakthroughs but serve as critical junctures for real-world intelligence applicationsThe leap of AI from perceptual intelligence to decision-making intelligence showcases a new frontier enabled by humanoid robotsPositioned as the ultimate vessels of general AI, humanoid robots offer more predictable avenues for applications across vast sectors such as industrial manufacturing, medical care, and household services, presenting enormous market opportunities.

As the conversation around robotics forecasting evolves, Cheng predicts studios like those of Elon Musk will anticipate that the ratio of humanoid robots to humans could very well surpass one to one, envisioning more than 10 billion units globallyMajor production milestones set for 2025 and 2026 will likely trailblaze the industry for mass deployment capabilities.

Looking back over the performance of humanoid robots within the A-share market since 2022, the theme investments reveal a pronounced trend wherein overseas technological advancements remain at the forefrontThe confluence of AI model progress, supportive domestic policies, and proactive corporate engagement have served as substantial catalysts of momentum within the industryWith anticipation of humanoid robots becoming mainstream by 2025, the prevailing trend indicates that sectors linked with high-profile international players could experience heightened certainty, driven by advancements and accelerated production timelines.

In conclusion, as the robotics sector evolves, significant attention will likely fixate on components with meaningful value and technological barriers, particularly in areas such as actuators and dexterous appendages

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