Over the past 18 months or so, artificial intelligence (AI) has come into its own, and companies at the cutting edge of this technology have experienced soaring demand for their products and services. One such company is Symbotic (SYM 0.17%), which is leading the charge for AI-powered warehouse solutions.

The stock is already up 69% over the past year, but one Wall Street analyst believes Symbotic stock still has a significant upside.

The AI-powered warehouse of the future

Northland Securities analyst Michael Latimore maintained an outperform (buy) rating on Symbotic stock while raising his price target to $60, which represents a potential upside for investors over the next 12 months or so of roughly 37% compared to the current price.

Symbotic supplies turn-key, end-to-end solutions for logistics and distribution networks that increase efficiency and decrease space requirements through the use of AI-powered robots. As you might imagine, creating, delivering, and installing such systems is an arduous and time-consuming process. The company has been working to decrease the time needed for these deployments. During its most recent earnings call, CEO Rick Cohen noted Symbotic had "set a new deployment record," and the company was focused on additional process improvements to reduce future deployment times.

Latimore notes that the company's quarter-long process refinements "went well" and believes Symbotic will be able to accelerate future deployments. Furthermore, the analyst suggests the company should be able to continue growing its revenue by more than 50%.

That forecast really isn't a stretch. During the company's fiscal 2024 first quarter (ended Dec. 30), Symbotic grew revenue by 78% year over year while cutting its losses by 81%. Furthermore, management's forecast is calling for Q2 revenue of $410 million at the midpoint of its guidance, which would represent year-over-year growth of 54%. Due to the nature of its business, the company's results will continue to be lumpy, but these process refinements should reduce deployment times and potentially increase sales.

Finally, at roughly 2 times sales, Symbotic offers solid AI-fueled growth at an attractive price.