This artificial intelligence (ai) stock has outperformed palantir in 2025. Is it still a buy?

The Unsung AI Hero: Why Symbotic Is Quietly Outperforming the Hottest Names

In the dynamic world of artificial intelligence, one name has dominated headlines: Palantir Technologies. Its impressive year-to-date gains have captivated investors. Yet, a less-publicized AI powerhouse, Symbotic, has quietly outmaneuvered even Palantir in 2025, delivering an astonishing 105% surge in its stock compared to Palantir's still-stellar 95%. This incredible performance begs the question: What is Symbotic, and is it still a compelling investment?

Revolutionizing the Warehouse with AI Robotics

Founded in 2007 by Rick Cohen, Symbotic set out to tackle the inefficiencies plaguing the supply chain, a problem Cohen intimately understood from his family's wholesale grocery business. Symbotic's ingenious solution? AI-powered supply chain robotics. The company deploys fully autonomous mobile robots, aptly named Symbots, which are orchestrated by sophisticated AI software to manage goods within its proprietary storage facilities. This technology automates the complex processes of handling pallets and cases, bringing unprecedented efficiency to warehousing.

Symbotic has cultivated an impressive client roster, including retail behemoth Walmart, which not only accounts for a substantial 87% of Symbotic's revenue but is also a significant investor. Other key partnerships include Greenbox, Albertsons, C&S Wholesale Grocers, and Target. These relationships underscore the robust demand for Symbotic's innovative solutions.

The Engine Behind the Exceptional Performance

Symbotic's explosive stock performance isn't just market hype; it's backed by solid fundamentals. The company reported a remarkable 40% year-over-year revenue growth in the second quarter of fiscal 2025, slightly outpacing Palantir's latest quarterly growth. While Symbotic is currently unprofitable, a common characteristic for high-growth tech firms, its financial trajectory shows promising signs. A significant improvement in gross margin, attributed to the completion of several lower-margin projects, signals enhanced profitability moving forward.

Perhaps most compelling is Symbotic's staggering backlog, which stands at nearly $23 billion and continues to expand. This massive pipeline of future revenue provides substantial visibility and confidence in the company's sustained growth. A pivotal strategic move in January 2025 further solidified Symbotic's market position: the acquisition of Walmart's Advanced Systems and Robotics (ASR) business. This acquisition not only integrates crucial technology but also unlocks the lucrative micro-fulfillment market, expanding Symbotic's total addressable market in the U.S. by over $300 billion, contributing to an impressive overall TAM of more than $1.2 trillion.

Is Symbotic Still a Smart Bet for Your Portfolio?

Given its rapid ascent, many investors might wonder if Symbotic stock is still a good buy. For long-term investors, the answer appears to be a resounding "yes." While Wall Street's consensus 12-month price target is currently lower than its soaring current price – likely a natural lag given the speed of its climb – a significant majority of analysts rate Symbotic as a "strong buy" or "buy."

Concerns about valuation are understandable. Symbotic trades at a forward earnings multiple of 238 times, which is undoubtedly high. However, it's worth noting this is still lower than Palantir's 263 times. More crucially, for a growth company like Symbotic, earnings-based metrics can be less indicative than sales. Here, Symbotic shines with a price-to-sales ratio of a remarkably reasonable 2.4, especially when compared to Palantir's lofty 119 P/S ratio. This suggests that despite its rapid growth, Symbotic's valuation relative to its sales is far more attractive.

Symbotic's proprietary technology provides a distinct competitive advantage, positioning it uniquely to capture a substantial share of its expansive $1.2 trillion total addressable market. Its deep-rooted relationships with industry giants like Walmart further solidify its future. While the current momentum might be unsustainable in the short term, the underlying innovation, market opportunity, and strategic positioning strongly suggest Symbotic is poised to be a significant long-term winner for discerning investors. It may not have the buzz of Palantir yet, but Symbotic is certainly making its mark in the AI revolution.