Symbotic Stock is Up 172% This Year—Here Is Why it’s Not Done Yet

Symbiotic (NASDAQ:SYM) shares have been hot of late, gaining around 172% year to date while shining a bright light on the emerging field of warehouse automation. As the AI revolution paves the way for a boom in robotics, momentum investors may have more reasons to consider the firms out there that aren’t named Tesla (NADSAQ:TSLA) or Nvidia (NASDAQ:NVDA). 

Undoubtedly, the two high-flying Magnificent Seven stocks are leading change and are ready to ring in the era of robots in the workplace and around the home. And, of course, many other Mag Seven firms are getting in on the rise of robots, with Amazon (NASDAQ:AMZN) leading the way in warehouse robotics while Apple (NASDAQ:AAPL) is rumored to launch some kind of desktop robot at some point over the next few years. Even Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOG) are poised to thrive on the physical AI opportunity that lies ahead.

While you could do just fine profiting from the robotics boom by sticking with the Mag Seven stocks, I think there’s plenty of reason to broaden one’s horizons with a name like Symbiotic. At the end of the day, the physical AI revolution simply has more needle-moving power for a sub-$100 billion firm than it does for a tech titan with a market cap that’s well into the trillions.

Symbiotic is the robotics high-flyer that you might not have heard of

There are some other, much smaller firms out there that are gaining traction in the rising field of robotics. Symbiotic stands out as one of the names to add to one’s radar this autumn. The stock has already gained around 178% year to date, but it’s been anything but a smooth ride higher, with shares shedding nearly half of their value from peak to trough earlier this year.

More recently, shares of SYM plunged just over 30% from its August peak before rapidly recovering in September, setting the stage for an eventual October breakout. Today, the stock is at fresh all-time highs, just shy of $69 per share, with a now respectable $40.6 billion market cap.

The AI-powered robotics pure-play specializes in warehouse robotics. Indeed, warehouse automation has some serious momentum behind it. And while e-commerce and cloud juggernaut Amazon is seen as a leader in the space, I also view Symbiotic as an up-and-comer that’s not to be underestimated, especially given the impressive sales growth numbers as well as the swelling backlog.

With retail giant Walmart (NYSE:WMT) joining forces with the warehouse robotics firm, with a hefty investment and the acquisition of its advanced systems and robotics business, perhaps it’s Symbiotic that’s to thank, as Walmart strives to keep up in the great warehouse robotics space.

Symbiotic stock looks richly priced, but some bulls think it’s a buy at today’s high

Symbiotic shares aren’t for the faint of heart. The name corrected violently (by around 70%) just over a year ago. And while having the backing of Walmart makes Symbiotic an easier name to get behind as warehouse automation becomes a bigger topic, investors should be ready for wild swings going into the next earnings season. Expectations are quite high, and some bearish analysts, like those at UBS, want to see the firm expand its customer base beyond Walmart.

Personally, I think Walmart is big enough with deep enough pockets to keep Symbiotic well-supported as the duo looks to advance the field of warehouse automation over the coming years. In any case, I think there’s ample opportunity for Symbiotic to expand its customer base by leaps and bounds, as the tech gets better.

Indeed, there are numerous retail supply chains out there that could sign on for such warehouse automation services once the field matures. And that’s the big opportunity for Symbiotic, a relatively under-the-radar name that will be interesting to watch as embodied AI becomes an even hotter topic than generative AI. Either way, there’s ample cost savings and efficiencies to be had, making the technology a likely contender for rapid adoption.