Shares of Chinese robot maker Unitree Robotics have risen more than 60% since Oct. 15, lifting its market value to 271.8 billion yuan, or about 53.97 trillion won. Investors are betting that AI models used in chatbots will speed development of “physical AI” that controls real robots.

Decrypt reported on Oct. 26, local time, that Unitree shares hit the daily limit of 20% on Oct. 23 before closing at 624 yuan, or about 124,000 won. On Oct. 26, the stock ended up 7.69% at 672 yuan, or about 133,500 won. Expectations grew that advances in physical AI could enable robots to carry out complex tasks in real settings, such as tidying a room or folding laundry, following commands.

One catalyst for the rise was remarks by Unitree founder Wang Xingxing (왕싱싱). Speaking at the World Physical AI Conference in Hangzhou, China, on Oct. 22, Wang predicted large-scale AI models could create a breakthrough in physical AI within 1 to 3 years. “If everything goes smoothly, it will take 1 to 2 years; if not, it will take 2 to 3 years,” he said. He also said OpenAI’s GPT-6 Astra can issue commands to robots without separate training.

JPMorgan on Oct. 26 upgraded Unitree to “overweight” from “underweight” and raised its target price to 995 yuan, or about 198,000 won. It had previously judged Unitree overly dependent on hardware and lacking software competitiveness, but changed its view after hearing explanations from Wang and other executives at the Hangzhou event and reviewing its humanoid product lineup.

Unitree listed on the Shanghai Stock Exchange’s tech-heavy STAR Market on Aug. 19. Its flagship humanoid robot G1 is priced at about $16,000, or about 21.2 million won, cheaper than rival products. Researchers, however, have pointed to a security vulnerability that could allow audio, video and spatial data to be transmitted to external servers without notifying users.

Commercialisation progress by rivals is also in focus. Tesla has just begun producing its humanoid robot Optimus at its Fremont, California factory and expects deliveries to external customers around the end of 2027. Figure AI agreed in 2024 to work with OpenAI to apply OpenAI models to humanoid robots.

Investors are also encouraged by the fact that Unitree is already selling robots. The market sees that if AI models that power chatbots can control robots in real environments, companies that manufacture robot bodies, motors and joints could benefit.

Still, the stock’s sharp rise over a short period is also raising concerns about valuation. Chinese business media reported that Unitree has recently warned investors about valuation risks related to the share-price surge.