Enabling the Humanoid Revolution: Vishay Precision Group

The most overlooked picks and shovels play for the Humanoid Revolution: $VPG

1️⃣ The Nervous System: VPG’s multi-axis load cells act as the robot's nervous system. These sensors measure force and torque across all three axes, allowing the AI to feel spatial orientation and directional pressure in real-time. VPG enables the fine motor skills required for human level tasks.

2️⃣ The Touch Factor: Their sensors are the nervous system for leading robots like Tesla’s Optimus and Figure. They provide the crucial tactile feedback (touch/feel) needed for real-world interaction. Figure’s Helix requires 3-gram pressure sensitivity to function. VPG’s sensors provide this, allowing robots to feel an impending slip and handle fragile objects safely.

3️⃣ Direct Leverage: VPG yields between $500–$1,200 in revenue per humanoid robot. As production ramps from thousands to millions (1M Optimus units in just Fremont at scale), the exponential revenue opportunity is massive.

4️⃣ Profitable Core: Unlike pre-revenue robotics startups, VPG operates a high-margin, profitable core business. They have the cash flow to fund R&D and expansion without diluting shareholders.

5️⃣ Multiple Expansion: Currently valued as a legacy industrial, VPG is due for a massive re-rate. As the market prices them as an AI Hardware Tier-1 supplier, expect the P/E multiple to catch up to the growth story.

The re-rate of these critical pieces of the humanoid robotics supply chain won't come when robots are inside our homes, it will happen during this critical early stage buildout. If we look at some critical AI infrastructure winners like $LITE, $CLS, $COHR growing from $1B-$5B companies to $30B+ and doing 10-30x moves. Given a $500M market cap for $VPG, it has the potential to see a similar trajectory as their leverage to humanoids becomes more and more obvious.

How much better does it get than having a sub $1B very profitable business with a strong balance sheet that enables the most critical physical function of the humanoid robot. It's almost the exact playbook I had laid out with $CLS in 2023 when it was between $15-$20 and now $CLS is destined for $400. These types of inflections for established profitable companies don't happen very often. I now rest my case.