J.P. Morgan reports on U.S. investment trends in applied tech - The Robot Report

J.P. Morgan’s recent “Applied Tech Report” highlights ongoing investment growth in U.S. sectors such as robotics, semiconductors, space, and defense, despite macroeconomic challenges like higher interest rates and market pressures. While IPOs and early-stage investments have remained steady or declined, market consolidation and strategic partnerships underscore confidence in the long-term potential of applied technologies. Government funding plays a significant role, with U.S. federal spending reaching $338 billion in fiscal year 2024, driven by programs like the CHIPS Act and Department of Defense contracts to startups. Venture funding has decreased since 2021, but federal support, especially for AI research and development, is expected to increase. Capital investment in robotics startups has notably increased from about $7 billion in 2020 to over $12 billion in 2024, largely due to advances in AI and rising demand for automation to address labor shortages and productivity needs. Robotics investments tend to focus on later-stage companies requiring substantial capital to scale,