Below, we recount highlights from constituents of the ROBO Global Robotics and Automation Index (ROBO) and the ROBO Global Artificial Intelligence Index (THNQ).
Silicon Valley’s Superintelligence Sprint
Ending the quarter on a (highly expensive) note, META (META) launched new, human-capital-intensive, superintelligence labs.
For years, Mark Zuckerberg has invested heavily in AI CapEx. Now, he’s assembling his AI Avengers team to take on the world. That might sound like some sort of techno-fantasy Hollywood movie, but it’s reality. The world’s greatest tech leaders believe the stakes are indeed this high.
The Power Play: Energy Infrastructure Meets AI Ambition
The current administration continues to lift AI as a priority, adding to May’s Nuclear order. On June 27, it was reported that the Trump administration is putting together executive actions to boost energy supply for Artificial Intelligence, namely by making it easier for new power generation to be added to the grid as well as utilizing federal land to build more data centers.
Speaking of data centers, NVIDIA (NVDA) and Foxconn are allegedly working on implementing humanoids and other dexterous automation in their upcoming NVIDIA AI server factories in Houston, Texas.
Meanwhile, Advanced Micro Devices (AMD) released their own challenger to NVIDIA, the Helios server based on MI400 architecture. AMD announced OpenAI as a design partner and customer for the forthcoming MI450 series.
And things are getting spicy on the internet, as Cloudflare (NET) introduces a “pay-per-crawl” to both block and allow AI bots to pay for access vs free-for-all.
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Beyond the Chip Wars: Alternative Plays
Outside of AI… We saw eVTOL maker and pioneer Joby Aviation (JOBY) see solid gains. These followed positive Trump administration comments regarding bolstering U.S. domestic drone and eVTOL programs under the EO “Unleashing American Drone Dominance” on June 6. Further major milestones were realized when they announced they had begun testing in Dubai. Both the Dubai Roads and Transport Authority (RTA) and the General Civil Aviation Authority (GCAA) granted approvals for demonstration flights. These flights over the city’s skyline mark the first urban air mobility trials in the Middle East.
The Eastern Frontier: China’s Multi-Modal Moonshots
Chinese robotics & automation players continue to make strides.
Recent ROBO index additions Xiaomi (XIACY), added to ROBO in Q1, and XPeng (XPEV), added in Q2, are two names pioneering the next wave of innovation.
Xiaomi
Originally known for smartphones, this tech giant has aggressively expanded into EVs, smart home ecosystems, and now humanoid robotics. Its vertical integration strategy positions it uniquely at the intersection of consumer electronics, automotive, and automation technologies.
Xiaomi recently held its “Human x Car x Home” event on June 26, 2025, showcasing its ecosystem vision. Key launches included AR glasses with real-time translation and navigation overlay, as well as deeper integration between vehicles and smart home systems through unified AI assistants.
Additionally, the recently revealed YU7 EV saw over 289,000 pre-orders in the first hour. The company aims to officially start delivering these latest vehicles — framed as $35,000 SUVs that challenge the best-of-the-best in terms of speed, comfort, and features — in 2026.
This should also drive some positive downstream impact to its AI-related chip/platform components: NVIDIA using itsDrive AGX Thor, Qualcomm (QLCM) using their Snapdragon 8 Gen 3, and of course TSMC (TSM) actually making both of these a reality as its fab partner.
XPeng
Founded in 2014, XPeng has evolved from a Tesla competitor to a multi-modal transportation innovator. Its expertise in autonomous driving software and AI has naturally extended into humanoid robotics and aerial vehicles, positioning it as a comprehensive mobility solutions provider. It even has its own humanoid division and announced earlier this year intent to invest ~$14 billion in humanoid robots.
Its EV division is pushing boundaries as well. Most recently – XPENG G7 Sets Industry Record with 130 km/h (~80mph) Automatic Emergency Brake (AEB) Test.
Furthermore, its flying car division, AeroHT, just hired its own CFO. The division could possibly spin out as an independent company. Their multi-modal technology is groundbreaking. It must be seen to be believed.
Image Source: XPeng Aeroht
The Contrarian Corner: Value Plays in the Volatility
Tariffs and geopolitical tensions still weigh on some companies’ short-term prospects. However, we maintain long-term conviction.
Those companies include Teradyne (TER), which is still down 27% YTD, facing near-term headwinds from tariff uncertainties and order pushouts. However, the company maintains exposure to both industrial and semiconductor inspection areas where medium-term growth catalysts are building. The increasing complexity of AI chip testing and the eventual recovery in industrial automation position Teradyne for a potential rebound as these temporary pressures ease.
DNA sequencing pioneer Illumina (ILMN), was caught in the crossfire of the trade war with China before it officially began earlier this year, currently down 25% YTD. We believe the company could see upside if a deal is reached with the country.
Relatedly, the NIH research grant freeze may be behind us, which should benefit companies in the lab process automation subsector that have heavier research versus clinical exposure. Ginkgo Bioworks (DNA), in THNQ, was up 97% in Q2, with a strong start to a recovery after a period of turnaround restructuring.
The Road Ahead: Positioning for H2 2025
Ultimately, the second half of 2025 is shaping up to be quite an action-packed adventure for Robotics and AI. Stay tuned.
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ROBO is the underlying index for the ROBO Global Robotics & Automation ETF (ROBO), the L&G ROBO Global Robotics and Automation UCITS ETF (ROBO.LN), and the Global X ROBO Global Robotics & Automation ETF (ROBO.AU).
THNQ is the underlying index for the ROBO Global Artificial Intelligence ETF (THNQ) and the L&G Artificial Intelligence UCITS ETF (AIAI.LN).
VettaFi is the index provider for the ROBO ETFs, AIAI.LN and THNQ ETF, for which it receives an index licensing fee. However, the ROBO ETFs, AIAI.LN and THNQ ETF are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of the ROBO ETFs, AIAI.LN and THNQ ETF.
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