What’s next after the artificial intelligence (AI) boom? The boom is not over, but many investors are now taking out their crystal balls to predict the next one.

The answer might be more straightforward than you think. Yes, you have created AIs that can recreate some form of human thought. The next frontier is to act on it, literally. 

Robotics with AI is projected to be the next boom trend. And UB Tech Robotics is pushing the envelope further.

In simple terms, they sell robots with AI software in China. These robots are used for industrial and logistical purposes, mainly. They carry objects less than 15 kilograms and transport them around a warehouse or factory. This saves time and reduces labour costs. 

But in 2025, UB Tech had a major breakthrough. It rolled out its Walker S2 model into the commercial and industrial setting. Walker S2 can now handle, sort, and conduct quality inspection in a factory. 

While this might sound dystopian, UB Tech designed the Walker S2 to have swappable batteries. This means that it can work around the clock, 365 days a year, without ever stopping. This is a big selling point for companies which need to run their factories and warehouses constantly.

In just 3 years, UB Tech’s revenue doubled from RMB1.0 billion in 2022 to RMB2.0 billion in 2025. Most of this growth came in the year 2025 itself, where it grew by 53.8%. 

UB Tech has four main segments that it operates - AI robots, AI software, and other intelligent robot products and services. And AI robots were the main driver, growing by 23 times from RMB35.6 million in 2024 to RMB821 million in 2025. It now constitutes the bulk of its revenue in just a year.

Since its initial public listing exercise on the Hong Kong Stock Exchange in December 2023, UB Tech has certainly put its money to good use to expand this segment.

UB Tech is now riding the AI robots trend, with revenue growing rapidly in the past year. However, it is still loss-making. Specifically, it has accumulated a total of RMB7.5 billion in losses as of December 2025. 

But its losses are narrowing. It registered a lower loss of RMB790 million in 2025 compared to RMB1.1 billion in 2024. Most importantly, its gross profit has doubled from RMB374 million to RMB754 million. At least from an operational standpoint, UB Tech is profitable. 

If anything, UB Tech’s cost per unit is getting cheaper the more revenue it generates. Raw materials, salary, and advertising costs make up the majority of its costs, but have grown less than its revenue in 2025

According to Grand View Research, the global artificial intelligence in robotics market is projected to grow by 9 times from US$20 billion in 2025 to US$183 billion in 2033.

In China, this growth will be driven by large-scale industrial automation, rapid deployment of AI-enabled robots, and strong production of robotics hardware. They are using robots for

The market views UB Tech very favourably, with an average target price of HKD161 and an upside of +94%.

They are also forecasting that the company will be profitable by 2027 and triple its profits in 2028. Meanwhile, revenue is projected to double in 2026 and triple again by 2028. This implies huge confidence in the company’s future outlook.

Given its strong potential, UB Tech's valuations are relatively expensive. Price-to-book ratio is at 6.9 times compared to the industry’s average of 4.0 times. However, there are other companies that have even more expensive valuations.

UB Tech Robotics has had a breakthrough year in 2025 and is projected to grow even stronger in the next few years. AI’s next application is in hardware and robots, and if the company plays its cards right, it could be in for a meteoric rise in both China’s and the overseas market.

Investors who are looking for more risk could consider whether UB Tech could be their high-risk, high-reward play.