Domestic robots are on the way… where Physical AI is going is jaw-dropping… look at these five AI infrastructure stocks… Louis Navellier says a September rate cut is coming
The home is coming.
The home is – like – single-digit years away.
That’s from Brett Adcock, the founder of robotics company Figure AI.
He’s referencing how rapidly we’re approaching the point at which humanoid robots will be doing “useful work” around the house.
Last month, on the tech podcast, Around the Prompt, Adcock said that humanoids will be common soon due to advancements in “neural networks.” You can think of these as algorithmic models that mimic how the brain works.
Adcock pointed toward the most recent update for his company’s robot, Helix, saying that its neural network is “approaching human speed and performance.”
Adcock isn’t alone in his optimism. Across the globe, humanoid robots have already cemented their place in industrial and logistics operations, and they’re not far from becoming fixtures in everyday life.
Get ready for what’s just over the horizon
At this point, humanoids in the workplace are nothing new. Amazon and Walmart utilize them extensively in their warehouses for logistics and order fulfillment.
(Disclaimer: I own both these stocks.)
But all sorts of companies are now using some version of robotics/humanoids in various capacities: Kroger, DHL, Honda, FedEx, Foxconn, and Johnson & Johnson are just a few to demonstrate the range across sectors…
So, with “robots in the warehouse” no longer a big deal, “robots in the home” would appear to be the cutting edge of this trend.
And it is…but let’s look even farther out…
Get ready for robot self-replication.
Yes – you read that right.
According to Live Science, researchers from Columbia University in collaboration with the University of Washington have created robots that can grow stronger by snapping on parts from other machines – essentially “eating” smaller robots to improve performance.
Meanwhile, CNN reports that scientists using frog stem cells built tiny “living robots” called xenobots that can gather loose cells and form new copies of themselves in a lab.
To be clear, these are tightly controlled experiments – not runaway machines hellbent on domination – but they signal what’s coming…
Robots that can adapt, heal, and maybe even self-replicate.
Whether we’re talking industrial robots, domestic humanoids, or robotic self-healing nightmare fuel, there’s one takeaway…
The robots are coming.
This week, we’ve featured interviews with investing experts Louis Navellier, Eric Fry, and Luke Lango, all highlighting this next great shift in artificial intelligence.
Physical AI is poised to reshape the real world in ways we’re only beginning to understand. To drive home the enormity of what’s in front of us, here’s the quick take from each analyst:
From Louis:
AI is moving from science fiction to reality, and it’s happening faster than most people imagine.
We’re at the beginning of an innovation revolution built on robotics, AI-powered factories, autonomous logistics and more.
It’s arguably the most transformational thing to happen to our society since the Industrial Revolution.
From Eric:
Thanks to AI, robots are now stepping off the screen and into the real world – and taking over physical tasks once reserved for humans.
This shift will reshape entire industries… It’s blindingly obvious that the world of the future will look little like the world today.
From Luke:
We’re closer than ever to ubiquitous robots that move freight, drones that deliver goods, and machines that diagnose disease
We’re in the middle of the most profound platform shift in human economic history.
All the growth in today’s economy is happening inside the AI ecosystem. Everything else is just noise.
From an investment perspective, humanoid robots today are where smartphones were in the early 2000s
Back then, most people didn’t fully grasp how these “pocket computers” would transform every aspect of life. But a few savvy investors saw the writing on the wall…
Touchscreens, wireless connectivity, and miniaturized sensors were converging into a once-in-a-generation platform shift. Apple launched the iPhone in 2007, and the rest is history.
Apple stock, trading around $3 (split-adjusted) before the iPhone announcement, went on to rise over 6,000% in the following 15 years. It became the defining investment of the mobile era. And some of Apple’s smaller components suppliers’ stocks also created lifechanging wealth for their foresighted investors.
If Louis, Eric, and Luke are right, we’re standing at the edge of the next massive platform shift – only this time, it’s not in your pocket; it will be walking around on two legs.
We have more to cover in today’s Digest so I’ll leave it here. But for a deeper dive into Physical AI with the research package from our three experts, click here. You’ll learn about their Day Zero Portfolio, which holds the best investments in AI-powered robotics, providing targeted exposure to the next wave of AI exponential progress.
In the meantime, buy AI infrastructure plays
In recent Digests, we’ve looked at the jaw-dropping capex spend from the Mag 7 companies, posing the question “when might this become a problem?”
We’ve highlighted related warnings from Eric:
Amazon, Microsoft, Alphabet, and Meta are on pace to spend more than a half-trillion dollars this year on R&D, plus property, plant and equipment.
For perspective, their combined annual net income last year was only $315 billion.
In other words, investing in AI technologies has become so mind-bogglingly expensive that winning the AI race could prove to be the ultimate Pyrrhic victory for the tech giants.
But a question…
If this is a bright red flag for these four companies, isn’t it a bright green flag for the companies on the receiving end of these billions?
According to Luke, absolutely.
Let’s go to his Daily Notes from Wednesday in Innovation Investor:
The chart below graphs the total estimated capital expenditures for America’s five largest hyperscale cloud datacenter operators – Amazon, Microsoft, Alphabet, Oracle, and Meta – over the next 12 months.
These companies were collectively spending no more than $15 billion per year on capex back in the early 2010s.
Just a few years ago, as recently as 2021, they were collectively spending less than $100 billion on capex. And before the launch of ChatGPT in late 2022, these 5 hyperscale AI firms were spending around $150 billion per year on capex.
But now… here in the summer of 2025… these 5 firms are expected to spend more than $400 billion on capex over the next 12 months.
Let that sink.
This is a bazooka of money all hurdling towards one place: AI infrastructure.
Earlier this week, we highlighted a handful of AI infrastructure names that Luke likes:
Right on cue, on Tuesday, Arista reported strong earnings, while raising its full-year revenue growth guidance. The stock is up 18% since (as I write Friday).
A note from Bank of America, analyzing the earnings report, echoes Luke’s point:
At a high level, Arista is benefitting from elevated investments in both back-end and front-end Cloud networks following major capex increases by hyperscalers.
Here’s Luke’s take:
Arista Networks delivered monstrous earnings. Revenue? Beat. Profits? Beat. Guidance? Raised. Momentum? Relentless.
The report shows one thing: AI infrastructure spending remains strong, is not slowing, and shows no signs of peaking.
Translation? The physical backbone of the AI revolution is still being built — and fast.
Meanwhile, just this morning, a second name on Luke’s list – MP Materials – delivered better-than-expected Q2 numbers. Shares popped 10% pre-market, though those gains have narrowed on profit taking as I write.
Here’s Luke’s overall take on AI infrastructure:
All [those billions spent on] new AI infrastructure will be used to create new AI models and products and services.
And all those new AI models and products and services will be rapidly adopted by enterprises and consumers.
And on and on goes the AI Boom…
Bottom line: Let’s not overcomplicate it – just invest where all the money is headed.
Finally, Louis says that a September cut is a lock
At the Aspen Economic Strategy Group conference earlier this week, Minneapolis Fed President Neel Kashkari told CNBC that recent signs of economic slowing – like softening consumer demand and cooling inflation – support the case for a rate cut in the near term.
For more, let’s go to Louis’ Growth Investor Flash Alert from Wednesday:
[Kashkari is] expecting two cuts this year, starting in September.
And Kashkari added that it might not be known for a year or more whether the White House tariffs are inflationary.
So, he said, “This tells me, as one policymaker, I need to start leaning more on the data that I’ve got confidence in. The economy is slowing, and that means in the near term it may be appropriate to start adjusting the federal funds rate.”
So, folks, this is a big, big development…
We’re going to get a rate cut.
If that’s true, two questions take center stage:
- How will the Fed frame it?
- How will markets interpret that framing?
A cut positioned as a proactive move, supported by confident language that “all will be well,” could ignite a market rally.
A cut that’s perceived as a behind-the-curve reaction to stave off deeper economic trouble could trigger a selloff.
As always, it’s not just the decision, it’s the messaging behind the decision.
Let’s just hope that the Fed comes through and cuts.
If not, this market will be very surprised, and very unhappy.
We’ll keep you updated.
Have a good evening,
Jeff Remsburg
