As 2025 winds down, investors are keen to position themselves for the traditional “Santa Rally,” when markets often see a boost from investor optimism and end-of-year buying. This year, two AI-driven growth stocks, Symbotic (NASDAQ:) and Flex (NASDAQ:), are poised to capitalize on this seasonal trend, especially following the Federal Reserve’s dovish outlook that promises continued accommodative monetary policy.
Here’s a closer look at why these companies represent compelling investment opportunities through year-end. As always, conduct your due diligence—this isn’t financial advice, but the setup looks merry and bright.
1. Symbotic: Revolutionizing Warehouses with AI Robotics
- Current Price: $63.62
- YTD Return: +168.3%
Symbotic designs fully autonomous warehouse robots and AI-driven supply chain systems, used by major retailers like Walmart and Target to streamline logistics. In fiscal 2025, the company reported $2.25 billion in revenue, a 25.6% year-over-year jump, underscoring its rapid scaling amid the AI-driven logistics boom.
Source: Investing.com
Position for Year-End Rally:
With a backlog exceeding $23 billion—up 400% y-o-y—and a best-in-class AI platform that dramatically improves supply chain efficiency, Symbotic is well positioned to benefit as lower interest rates encourage corporate capital spending. The stock also carries significant short interest (25%), meaning any positive news in December could trigger a powerful short squeeze.
Source: InvestingPro
With a 168.3% year-to-date stock price return in 2025 and a fair value upside of 24.7%, SYM looks primed for further gains if market optimism holds. The company earns a “GOOD” financial health label of 2.85, reflecting a strong balance sheet, manageable debt, and positive analyst sentiment.
2. Flex: The Unsung Hero Powering AI Hardware
- Current Price: $71.01
- YTD Return: +84.9%
Flex, a diversified manufacturer of critical AI hardware components, operates behind the scenes to power the data center boom. As a key supplier to tech giants such as Nvidia, Microsoft, and Google, Flex produces liquid cooling systems, GPU enclosures, and server infrastructure essential for next-gen AI workloads.
Source: Investing.com
Position for Year-End Rally:
Flex is primed for a Santa Rally thanks to its direct exposure to the AI data center frenzy, where demand for custom hardware is skyrocketing. Unlike many overvalued AI stocks, Flex trades at a bargain 20x forward earnings while delivering 60% EPS growth, making it a standout in terms of valuation and execution. Analysts are bullish, with a mean target of $74.51 (just above the current $71.01).
Source: Investing.com
Shares have surged 84.9% year-to-date, hitting a fresh 52-week high amid analyst upgrades praising its margin expansion and cash flow strength. Flex posts a Financial Health Score of 2.91, which InvestingPro rates as “GOOD,” thanks to continued profitability and aggressive share buybacks.
Bottom Line
As the Fed pivots dovish, Symbotic and Flex offer pure-play AI growth at reasonable valuations—making them prime candidates for a year-end surge. Watch for December catalysts and institutional buying.
Below are the key ways an InvestingPro subscription can enhance your stock market investing performance:
- ProPicks AI: AI-managed stock picks every month, with several picks that have already taken off in November and in the long term.
- Warren AI: Investing.com’s AI tool provides real-time market insights, advanced chart analysis, and personalized trading data to help traders make quick, data-driven decisions.
- Fair Value: This feature aggregates 17 institutional-grade valuation models to cut through the noise and show you which stocks are overhyped, undervalued, or fairly priced.
-
1,200+ Financial Metrics at Your Fingertips: From debt ratios and profitability to analyst earnings revisions, you’ll have everything professional investors use to analyze stocks in one clean dashboard.
-
Institutional-Grade News & Market Insights: Stay ahead of market moves with exclusive headlines and data-driven analysis.
-
A Distraction-Free Research Experience: No pop-ups. No clutter. No ads. Just streamlined tools built for smart decision-making.
Not a Pro member yet?
Already an InvestingPro user? Then jump straight to the list of picks here.
Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.