by Krystal Daibes Higgins, CFA
Senior Vice President
Equity Research and Portfolio Management
Not too long ago, robots were mostly considered science fiction and far-fetched possibilities. Now the future that once felt distant showed up at the Consumer Electronic Show (CES) this year in Las Vegas, where companies gather to showcase their latest inventions. It’s a chance for investors to get a glimpse of the near future. As usual, the hype didn’t disappoint this year.
From Spectacle to Substance
What stood out wasn’t that these robots could move smoothly and do minute tasks, but that they’re starting to demonstrate real utility. Atlas, Boston Dynamic’s humanoid robot, is helping with the demanding tasks within the industrial space. It can lift heavy objects, and it’s not limited to the movements of a human body. It can twist and turn its joints 360 degrees to accommodate tricky physical tasks. The LG ClOiD is also getting recognition for its ability to handle everyday basic household tasks, such as general cleaning (laundry included), kitchen tasks and ensuring your home is secured at night. We would be remiss to not include that there were more nerve-racking robots such as EngineAI, where robots are trained to kickbox and breakdance.
As it relates to investments, CES allows us to better understand where the world is headed, the next product cycles, how supply chains are changing, and with that, which companies are leading the way and all the opportunities to invest in spaces where demand and profit may show up next.
If robots are landing, semiconductors and the entire infrastructure to improve AI is the runway. Robotics require a massive amount of compute power. It needs compute and inference training, as well as a long list of hardware components such as sensors, connectivity and power/batteries. Nvidia and Advanced Micro Devices CEOs recently announced the massive amount of computer power that will be needed to meet surging demand.
From CES to Earnings – A Busy Week
These statements come on the heels of the fourth quarter earnings reports, which kicked off this week. With just a handful of companies reporting so far, we’re already seeing market leadership begin to rotate. The first two weeks of the year were propelled largely by lower-quality, higher-volatility stocks – especially within the more cyclical corners of the market. But early reports from large banks and semiconductor-related commentary are starting to shift attention back to some of the higher-quality, secularly driven businesses.
The Fed, Rates, and What Markets Are Ignoring
In addition, the Fed signaled this week that it’s likely to remain patient on rate cuts, causing expectations for monetary easing to drop meaningfully from just two weeks ago. The Fed’s tone looks grounded in the data: the unemployment rate dipped to 4.4% in December, easing pressure to cut rates to support the labor market. With employment holding up, policymakers appear comfortable keeping attention on inflation, which remains above target.
What’s notable, however, is the market’s reaction – or lack thereof. Investors have largely shrugged off the shift in rate-cut expectations, with markets moving higher after the news. That resilience suggests investors are increasingly focused on earnings’ quality and longer-term fundamentals.
Takeaways for the Week
CES 2026 showed robotics moving from sci-fi to practical “physical AI,” with robots increasingly capable of supporting real-world tasks in homes and industrial settings.
As Q4 earnings season begins, early bank and semiconductor commentary is nudging markets back toward higher-quality, secular growers—even as the Fed stays patient on rate cuts and equities push higher.