Two companies are teaming up to revolutionize the supply-chain world through artificial intelligence (AI). Specifically, SoftBank (OTCMKTS:SFTBY) just announced today that it has joined forces with warehouse automation leader Symbotic (NASDAQ:SYM) to launch GreenBox Systems, a joint venture designed to bring automation to the struggling supply-chain industry. In a statement, the companies said that GreenBox can address an opportunity in the warehouse-as-a-service market worth more than $5o0 billion. If that’s true, this new venture could be a growth-driving catalyst for both firms.
In June 2023, SoftBank CEO Masayoshi Son announced plans to start betting big on AI. Among other things, this development makes it clear that Son is delivering on his promise. While shares struggled a few months ago, SFTBY stock has since rebounded and seems poised to continue riding the AI wave to new heights. Partnering with Symbiotic is a highly strategic decision that is likely to help both companies.
What’s Happening With SYM Stock?
SYM stock did jump earlier today, although shares are now more than 15% in the red as of this writing. Meanwhile, Symbotic’s new partner is faring somewhat better; SoftBank is currently up by less than 1%. Today’s movement aside, though, interest in AI is still red hot with no signs of slowing down. Partnerships of this kind are what investors want to see right now.
To say that Symbotic has displayed impressive growth since the start of the AI boom would be an understatement. SYM stock has surged around 130% over the past six months as this new technology has overtaken markets on a global scale.
Companies that operate in the warehouse automation space might not receive as much attention as the giants of Big Tech, but that doesn’t mean they don’t represent significant opportunities for investors — particularly as some are still undervalued. Symbotic is a prime example. The stock still trades at less than $50 per share but boasts a “strong buy” consensus on TipRanks. Now, though, the firm has secured a new partnership that promises to be highly lucrative. As the joint statement with SoftBank notes:
“GreenBox will automate supply chain networks globally by operating and making accessible Symbotic’s advanced A.I. and automation technology for the warehouse. Symbotic’s A.I.-powered robotics and software technology will be the cornerstone of GreenBox, installed in single and multi-tenant facilities. The efficiency, SKU agility, scalability, and density of the Symbotic system allows GreenBox to effectively manage single and multi-tenant facilities across the supply chain and thus fundamentally reshape the economics of automated supply chain services.”
On top of that, these new warehouses will be powered by Symbotic systems. This means a massive sale for the company worth $7.5 billion over the course of the contract. Bloomberg reports that both Symbotic and SoftBank will be contributing a combined sum of $100 million to establish GreenBox.
As InvestorPlace contributor Michael Que reports, Symbotic has partnered with industry leaders before, including Target (NYSE:TGT) and Albertsons (NYSE:ACI). Now, it’s expanding its reach even further — and helping to fill an increasing market need. All told, investors seeking AI stocks to buy shouldn’t overlook SYM stock or this new venture.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
