Symbotic (SYM -4.66%) stock surged by double-digit percentages for the second straight week, jumping 14.2% this week at its highest point in trading through 2 p.m. ET Friday, according to data provided by S&P Global Market Intelligence. Thanks to a stupendous week, Symbotic stock is up more than 35% this year, as of this writing.

Symbotic builds and deploys automation systems for warehouses, distribution centers, and supply chains. Its fully autonomous, artificial intelligence (AI)-enabled robots are already deployed in the warehouses of some of the world’s largest retailers, including leader Walmart. And, you may thank Walmart for Symbotic stock’s rally this week.

Symbotic-Walmart deal is a big deal

Symbotic is extending its long-standing partnership with Walmart. It will acquire Walmart’s advanced systems and robotics business for $200 million in cash, with additional contingent payments of up to $350 million.

At the same time, Symbotic will develop and deploy advanced automation systems for hundreds of Walmart stores or accelerated pickup and delivery centers (APDs). Walmart will pay Symbotic $520 million to fund the development program and has committed to buying automation systems for 400 APDs over a multiyear period if Symbotic meets performance criteria.

Overall, Symbotic believes the two deals could boost its backlog by more than $5 billion and open up a new market for micro-fulfillment of customer orders. The new addressable market alone could be worth $300 billion in the U.S.

Why Symbotic stock could continue to rise

Symbotic’s extended partnership with Walmart validates its automation technology and reflects its growth potential. That explains why investors continued to buy the robotics stock this week although Symbotic announced its Walmart deals on Jan. 16.

Importantly, Symbotic recently restated its numbers for the year ended Sept. 28, 2024, because of accounting errors. Investors, however, are giving the company the benefit of doubt, thanks to its relationship with Walmart, which is only growing stronger by the day.

With Symbotic’s first-quarter numbers for fiscal year 2025 coming up on Feb. 5 and the company expected to report a big jump in revenue, the stock could go even higher.