These two stocks may not be as well-known as the big tech giants, but each has a compelling buying proposition.
Symbotic is a key player in AI-powered robotic warehouse solutions.
Applied Digital acts as an AI owner and GPU-as-a-service provider.
10 stocks we like better than Symbotic ›
Bull markets, which are periods of rising stock prices (including a gain of more than 20% from recent lows), are a normal part of market cycles that come and go quite regularly. Stick to your long-term plan and avoid emotional reactions to short-term market noise or daily fluctuations.
As a long-term investor, it is usually best to invest a fixed amount of money at regular intervals, both through the ups and downs of the market. Regardless of market conditions, prioritize companies with strong fundamentals. Focusing on quality will inevitably help you weather crises and ensure your portfolio is primed for profitable growth.
On that note, if you want to invest in the future of artificial intelligence (AI) and are thinking about the growth potential of your portfolio in the coming years through bull and bear markets, here are two stocks to consider.
Image source: Getty Images.
symbolic(NASDAQ: SYM) is an automation technology company offering end-to-end robotic warehouse solutions powered by artificial intelligence. Initially founded to optimize supply chain logistics for retailers and wholesalers, the company uses fleets of autonomous robots and proprietary software to manage the storage, retrieval and palletization of goods.
Symbotic outsources the manufacturing of its robotic components to established automotive suppliers. This allows the company to scale quickly without the capital intensity of owning large-scale factories.
The company’s main revenue driver is the sale of end-to-end modular automation systems. These turnkey solutions are often integrated into massive distribution centers for major clients such as Walmart, Aimand Albertson. The company also recently entered the healthcare sector through a customer relationship with Medlinewhich could open up even more new market opportunities.
Once a system is installed, Symbotic generates ongoing revenue through sources such as software maintenance and support fees, and ongoing technical support and operational assistance for deployed hardware. Through its GreenBox warehouse-as-a-service joint venture with SoftBankSymbotic is expanding into a service-based model. GreenBox offers automated storage to smaller businesses that may not want to own the hardware, and this could prove to be a massive, long-term recurring revenue stream for years to come.
Walmart remains a critical partner that owns a notable stake in the company (approximately 15% as of 2024). In 2025, Symbotic acquired Walmart’s Robotics and Advanced Systems business to further integrate its technology.
Currently, Symbotic’s contracted order book stands at approximately $22.5 billion, representing approximately 10 times its annual sales and providing exceptional revenue visibility for years to come. Much of that delay is attributable to its GreenBox and Walmart joint venture. Symbotic has also demonstrated strong revenue growth, with full-year 2025 revenue increasing 26% to nearly $2.3 billion.
Symbotic has struggled with consistent profitability, but reported about $788 million in free cash flow in its recent fiscal year, a significant change from negative free cash flow of $102.45 million in the previous one. Investors who have a healthy risk tolerance and are looking for a growth-oriented AI and robotics stock with huge runway ahead might want to take a second look at this business.
Applied Digital (NASDAQ:APLD) designs, develops and operates next-generation digital infrastructure and cloud services for the artificial intelligence and high-performance computing (HPC) industries. Its business model primarily involves acting as an AI owner, where it provides specialized data center facilities and electrical infrastructure to major hyperscalers under long-term contracts. The company strategically locates its data centers in areas with access to abundant, cost-effective energy, often near renewable energy sources to maximize efficiency and minimize operating costs.
Its business model relies heavily on the company’s ability to quickly design, build and bring online large-scale specialized data centers to meet the explosive demand for AI computing capacity. The company operates through two main business segments. Its data center hosting business involves leasing purpose-built AI factories (high-density, liquid-cooled data centers) to large hyperscalers such as Core tissueThey often supply their own computing equipment, such as graphics processing units (GPUs) and servers.
Its other major business is its cloud services segment, which offers on-demand GPU power as a secure, scalable and managed GPU-as-a-service solution. This allows companies that need HPC capabilities to access the necessary computing resources without the significant capital investment and operational burdens of building and managing their own infrastructure. The company generates revenue through multi-year leases and service contracts.
Its partnership with CoreWeave alone accounts for approximately $11 billion of its $16 billion in contracted revenue over the next 15 years (the remaining $5 billion is contracted by an unnamed hyperscaler customer). By building facilities in locations with low electricity costs and leveraging natural or innovative cooling methods, Applied Digital achieves a lower total cost of ownership, which it passes on to customers, making its services highly competitive.
The company uses partnerships, such as its significant $5 billion financing facility with Macquarie Asset Management (part of Macquarie Group), to finance the capital-intensive construction of new data centers at the project level. The company also has an active development pipeline of 4 gigawatts for AI data centers, which are in high demand from hyperscalers and AI companies facing a severe shortage of data centers designed specifically for AI workloads.
Applied Digital has managed its supply chain effectively to secure the necessary land, power and equipment. This has allowed the company to reduce its data center construction times from 24 months to 12 or 14 months, an important competitive advantage in a market traditionally with high demand and long delivery times.
The company has been operating at a net loss due to high upfront costs for data center construction, higher depreciation expenses and costs associated with facilities that are not yet generating revenue, but its revenue increased 84% in the latest quarter to $64.2 million. For investors looking to invest in an emerging player in the HPC and AI infrastructure landscape and capitalize on the explosive demand for AI-powered data centers and cloud computing, Applied Digital could be worth considering.
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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Macquarie Group, Symbotic, Target, and Walmart. The Motley Fool has a disclosure policy.
2 AI Stocks That Could Soar in the Next Bull Market originally posted by The Motley Fool
