RRX fell from $220 to $170 post-earnings despite a 16% EPS beat, now trading at 17x forward earnings against a $249 average analyst price target. Unitree's Chinese robotics IPO is 8,000X oversubscribed, resetting valuation anchors for every robotics IPO that follows and pressuring existing public market comps. Austin compares robotics to self-driving cars, describing both as directionally correct but slow to commercialize, and warns investors to expect high volatility across a multi-year thesis.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Regal Rexnord didn't make the cut. Grab the names FREE today. The following is a segment recap from The AI Investor Podcast, where 24/7 Wall St.
Analyst Austin Smith and Eric Bleeker debate whether robotics is setting up to be the defining investment trend of 2027. In this segment, they dig into the reported 8,000X oversubscription of Unitree's upcoming Chinese IPO, the volatility investors should expect on the path to a physical AI economy, and why Regal Rexnord (NYSE:RRX), a conservative robotics-adjacent name previously highlighted on the show, has become a case study in the patience this thesis will require. The full segment is embedded below.
Austin and Eric walk through the Unitree news, the Regal Rexnord post-earnings selloff, and the broader question of whether robotics stocks are the next big investing wave. If you're unable to view the video above, you can copy/paste the following URL into your browser: https://www.youtube.com/watch?v=98dk_2os6sg This is a segment from The AI Investor Podcast episode titled A New Portfolio Add In Our Most Important Episode Of The Year, hosted by Austin Smith and Eric Bleeker. Unitree's upcoming Chinese IPO is reportedly 8,000X oversubscribed, a signal of just how much appetite exists for pure-play robotics exposure.
Regal Rexnord, the more conservative robotics play the show recommended, dropped from $220 to $170 after earnings. Eric said at $170, "nothing's changed in my opinion of it", framing the selloff as unrelated to the long-term thesis. Austin's framing: robotics is real, but it will move on manufacturing timelines, meaning patience and high volatility.
Unitree's upcoming Chinese IPO is now reportedly 8,000X oversubscribed. That level of demand tells you everything about how investors are positioning for humanoid and general purpose robotics as the next platform shift after generative AI. One important caveat for US investors: Unitree is a private Chinese company pursuing a listing on a Chinese exchange.
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