Buried beneath the surface of Desktop Metal's (DM) recent Q1 2024 earnings call [Earnings Transcript Q1 2024](https://seekingalpha.com/symbol/DM/earnings/transcript) lies a tantalizing hint, a whisper of a potential market explosion that could redefine the company and the entire additive manufacturing industry. While analysts focus on the encouraging signs of a return to growth and the admirable strides toward profitability, they seem to have missed a critical piece of the puzzle – the convergence of artificial intelligence and robotics, and Desktop Metal's unique position at the epicenter of this seismic shift.

Sure, the headlines touted the record Q1 adjusted EBITDA, the impressive gross margin expansion, and the strategic shift to reinvest in go-to-market strategies. These are all positive developments, reflecting Desktop Metal's resilience and strategic foresight in navigating a challenging macroeconomic environment. But the real story lies in a seemingly innocuous detail: the adaptation of Desktop Metal's AI-powered generative design tool, Live Parts, for a new, explosive application – smart limbs for humanoid robots.

This isn't just another incremental step in additive manufacturing's steady march towards broader adoption. This is a potential game-changer, a glimpse into a future where robots become as ubiquitous as smartphones and electric vehicles, a future where Desktop Metal's expertise in printed castings and lightweight metals could make it a key supplier in a multi-billion dollar industry.

Why This is Significant

Humanoid robots, fueled by rapid advancements in artificial intelligence, are on the cusp of breaking into the mainstream. The demand for these robots is expected to skyrocket in the coming years, driven by applications in healthcare, manufacturing, logistics, and even personal assistance.

The key to unlocking this market lies in cost-effective production of high-quality components. And this is where Desktop Metal comes in. The company's expertise in printed castings, particularly its mastery of lightweight metals like aluminum and magnesium, positions it perfectly to supply the intricate, lightweight limbs that will form the backbone of these robots.

"Ric Fulop, Desktop Metal's CEO, highlighted this potential in the earnings call, stating: "This is an application that one day could be bigger than everything we do today combined, and it could be a killer app for our printed casting technology." He went on to draw parallels with the cell phone and electric vehicle industries, hinting at the sheer scale of the opportunity. [Earnings Transcript Q1 2024](https://seekingalpha.com/symbol/DM/earnings/transcript)"

Desktop Metal's Dominance in Printed Castings

To put this into perspective, consider the company's existing dominance in the printed casting market. Desktop Metal currently enjoys an 80% market share in this segment, a segment that grew 27% in 2023 to reach $73 million in revenue. The company estimates that the total addressable market for printed castings could reach $20 billion, driven by broader adoption by the 25,000 foundries globally. [Earnings Transcript Q4 2023](https://seekingalpha.com/symbol/DM/earnings/transcript)

The Potential Revenue Explosion

Now imagine layering on top of this the demand for smart limbs for humanoid robots. Even if this market reaches a fraction of the size of the smartphone or electric vehicle industries, the implications for Desktop Metal are staggering. We're talking about a potential revenue stream that could dwarf its existing business, a revenue stream that could easily propel the company to $1 billion and beyond.

Crunching the Numbers

This table illustrates the potential revenue Desktop Metal could generate from the smart limbs market alone, assuming a 20% market share.

Charting Desktop Metal's Growth

The following chart shows Desktop Metal's historical revenue and projects potential future revenue with the growth of the humanoid robot market.

The Future of Desktop Metal and Additive Manufacturing

While it's too early to declare Desktop Metal the undisputed winner in the race to supply components for humanoid robots, the company has certainly placed a strategic bet on this burgeoning market. And if this bet pays off, it could redefine the company's trajectory, transforming it from a leading player in additive manufacturing to a key supplier in one of the most transformative industries of our time.

"Fun Fact: The world's first 3D-printed car, the Strati, was printed in just 44 hours using a large-scale additive manufacturing technique! This demonstrates the incredible speed and potential of additive manufacturing for transforming production processes. [Source: Popular Mechanics](https://www.popularmechanics.com/cars/car-technology/a9994/local-motors-strati-the-first-3d-printed-car-16995066/)"