This Artificial Intelligence (AI) and Robotics Stock Has Crushed Nvidia and Palantir This Year. It Can Still Soar Higher.

Ask most investors about the top players in the field of artificial intelligence (AI), and many will likely mention AI chipmaker Nvidia and data mining and AI software pioneer Palantir Technologies -- and with good reason. Both have leveraged their expertise to profit from the rapid adoption of AI, which is reflected in their robust sales and profit growth.

Nvidia's graphics processing units (GPUs) are the gold standard in the data center GPU market, and Palantir arguably has no real competition when it comes to the real-time, data-driven decisions made possible by its Artificial Intelligence Platform (AIP). Both companies have become leaders in the field of AI and delivered outstanding growth in 2025.

On the back of impressive financial performances, Palantir stock has risen 114% so far this year (as of this writing), while Nvidia has gained 36%. Both have easily outpaced the 14% gains of the S&P 500 (SNPINDEX: ^GSPC) since the start of 2025.

However, another AI player has generated much better gains than either of these household names. Symbotic (NASDAQ: SYM) has soared 134% during the same period and appears poised to extend its lead.

Image source: Getty Images.

Bringing AI to fulfillment and the warehouse

We live in the age of digital retail, and customers expect lightning-fast delivery. This has created the need for advances in warehouse automation and more efficient fulfillment solutions, and Symbotic was there to answer the call.

The company developed a suite of customizable AI solutions that not only automate the processing of full pallets, but can also handle individual cases to maximize available warehouse space. Symbotic's industry-leading algorithms control an army of computer vision-enhanced robots that work collectively to load and unload delivery vehicles, move pallets, and segregate and create made-to-order pallets for merchants. By using every inch of available warehouse space and handling custom orders, the system boosts efficiency and saves operators money.

As such, Symbotic is making a splash in the space, which is showing in the company's financial results.

Show me the money

Symbotic reported the results of its fiscal 2025 fourth quarter (ended Sept. 27) after market close on Monday, and investors were in for a treat. The company delivered revenue that grew 9% to $618 million, surpassing management's outlook and analysts' consensus estimates of $604 million, resulting in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $49 million, which jumped 17%. The company also delivered growing operating cash flow and free cash flow of $530 million and $494 million, respectively.

Management was bullish about the future, thanks in part to Symbotic's contractual backlog of $22.5 billion, which gives the company keen insight into future growth. As a result, the company issued a strong outlook for its fiscal 2026 first quarter, forecasting revenue of $620 million and EBITDA of $51 million, both at the midpoint of its guidance. For context, Wall Street was calling for revenue of about $612 million, so Symbotic's outlook was well ahead of investor expectations.

During the earnings call with analysts, CFO Izilda Martins noted that Symbotic launched 10 new system deployments during the fourth quarter, bringing the total number of operational systems to 48, nearly double the level from fiscal 2024. Martins also noted that the company expanded its gross margins, thanks to "disciplined cost management, solid project execution, and strong supply chain partnerships." Furthermore, Symbotic expects additional gross margin expansion in the future.

Future's so bright...

Investors were clearly enthusiastic about the results, driving the stock up as much as 15% in after-hours trading on Monday. Yet there could be much more to come.

Oppenheimer analyst Colin Rusch maintains an outperform (buy) rating and an $83 price target on Symbotic stock. For those doing the math at home, that represents potential upside of 50% compared to Monday's closing price. The analyst cited the faster-than-expected ramp-up in system deployments and efficiency gains as the basis for the bullish call.

Symbotic is just now making the shift to consistent profitability, so earnings-based valuation metrics are useless. However, the stock is currently selling for less than 3 times sales, which is a reasonable multiple for a company expected to grow revenue by 24% annually over the coming five years.

Danny Vena, CPA has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and Symbotic. The Motley Fool has a disclosure policy.