Key Takeaways Sanmina is expanding into AI servers, storage, and networking for hyperscalers and enterprises.SANM gained scale via ZT Systems buyout and partnership with AMD on AI rack-scale solutions.SANM is targeting edge AI and data centers to capture growth in AI hardware demand.Sanmina Corporation (SANM) is increasingly pivoting toward artificial intelligence (AI) infrastructure manufacturing by leveraging its advanced engineering, supply chain management and system integration capabilities. The compan ...

If you’ve been around markets long enough, you know the real money isn’t always made chasing the shiny headline stocks. Sometimes the best opportunities are hiding in plain sight inside the industrial backbone of the tech economy. Today’s Bull of the Day is one of those stocks. It’s not the poster-child for the semiconductor industry, but rather, a behind-the-scenes force that helps power some of the most complex electronics manufacturing on the planet.I’m talking about Zacks Rank #1 (Strong Buy) Sanmina (( ...

Sanmina Corporation (NASDAQ:SANM) is one of Billionaire Ken Fisher’s 15 Most Notable Moves for 2026. Sanmina Corporation (NASDAQ:SANM) is another smart AI play by Fisher. His fund first purchased a stake in the company in the third quarter of 2025, buying nearly 167,000 shares at an average price of around $112. In the filings for the fourth quarter of 2025, the fund increased this stake by close to 300%, amassing over 650,000 shares. In November 2025, Fisher discussed his views on the overall AI landscap ...

Core Insights - Silicon Motion Technology Corporation (SIMO) and Sanmina Corporation (SANM) are significant players in the technology hardware ecosystem, with SIMO focusing on microcontroller ICs for NAND flash storage and SANM specializing in electronics manufacturing services (EMS) [1][2] Group 1: Silicon Motion (SIMO) - SIMO is the leading merchant supplier of client SSD controllers, collaborating with major market leaders in the U.S., Taiwan, and China [3] - The company has initiated sales of 3D SSD controllers, which are expected to drive significant growth as NAND Flash partners expand their 3D capacity [3] - Operating on a fabless model, SIMO outsources manufacturing to foundries like TSMC, allowing for lower capital investment and higher margins [4] - Key growth drivers for SIMO include AI, high-performance computing, cloud data centers, automotive storage, and mobile devices, with over 5 billion controllers shipped in the last decade [4] - Sales for SIMO are projected to rise by 43% in 2026, with EPS expected to increase by 63.4% [7][11] - Over the past year, SIMO's stock has gained 131.1%, outperforming the industry growth of 94.8% [14] Group 2: Sanmina (SANM) - SANM focuses on 42Q connected manufacturing, integrating data from global factories to enhance visibility and decision-making [6] - The company has implemented this technology in over 70 factories across 15 countries, connecting more than 35,000 manufacturing machines [6] - SANM offers end-to-end solutions, including product design, manufacturing, and aftermarket support, which streamlines processes and reduces costs [9] - However, SANM has faced supply chain disruptions and competition from larger players, impacting its net sales [10] - Sales for SANM are expected to grow by 67.9% in fiscal 2026, with EPS projected to improve by 66.6% [12] - Over the past year, SANM's stock has increased by 64.4% [14] Group 3: Comparative Analysis - SIMO is ranked 1 (Strong Buy) by Zacks, while SANM holds a 2 (Buy) rating, indicating a competitive edge for SIMO [18] - SIMO's shares trade at a price/sales ratio of 3.2, significantly higher than SANM's 0.46, suggesting that SIMO is relatively more expensive [16] - Despite SANM's growth potential, SIMO's superior estimate revisions and performance metrics position it as a more favorable investment option [19]

Core Insights - Sanmina Corporation (SANM) reported a significant increase in cash flow from operations, reaching $178.7 million in Q1 FY26 compared to $63.9 million in the same quarter last year [1][8] - The company's total revenues surged by 59% year over year to $3.19 billion, driven by strong demand in the Communications Networks and AI hardware sectors [2][8] - Sanmina's free cash flow for the quarter was $92 million, with capital spending amounting to $87 million [1][8] Group 1: Financial Performance - Cash flow from operations increased significantly, with a rise to $178.7 million from $63.9 million year over year [1][8] - Free cash flow totaled $92 million, indicating strong financial health [1][8] - Total revenues reached $3.19 billion, up 59% from the previous year, primarily due to AI-driven hardware demand and the acquisition of ZT Systems [2][8] Group 2: Operational Efficiency - Strong operational execution and improved working capital management contributed to cash flow growth, with inventory reduction of $179.4 million and receivable collections of $39.8 million [3] - Customer advances of $827 million for raw materials further supported cash flow and working capital [3][4] - The company maintains substantial liquidity of $3.6 billion, enhancing its financial flexibility for growth investments [4] Group 3: Competitive Landscape - Competitors Jabil, Inc. and Celestica Inc. also reported strong cash flow figures, with Jabil generating $323 million and Celestica $250.6 million in operating cash flow for Q1 FY26 [5][6] - Celestica's free cash flow increased by 62.7% year over year, indicating effective capital management and positioning for growth [6] Group 4: Valuation and Estimates - Sanmina shares are currently trading at 11.56 times forward 12-month earnings, which is lower than the industry average [9] - Earnings estimates for Sanmina for 2025 and 2026 have seen upward revisions over the past 60 days, reflecting positive market sentiment [10][11]

Core Insights - Sanmina Corporation is positioning itself as a key player in the artificial intelligence ecosystem by enhancing its AI data center infrastructure capabilities through strategic acquisitions and investments [2][6] - The company has experienced a stock price increase of 67.2% over the past year, although it has underperformed compared to the industry average growth of 106.4% [3] Company Developments - In October 2025, Sanmina completed the acquisition of ZT Systems' data center infrastructure manufacturing business from AMD, significantly enhancing its capabilities in AI and cloud manufacturing [6][7] - The acquisition allows Sanmina to better serve hyperscale cloud providers, who are heavily investing in AI infrastructure, and positions the company as a manufacturing partner for AMD's AI solutions [7] Technological Advancements - Sanmina's 42Q platform connects 70 factories across 15 countries, integrating real-time manufacturing data from over 35,000 machines, which enhances operational efficiency [8][10] - The 42Q connected manufacturing system improves visibility and accelerates decision-making processes, allowing the company to adapt to customer needs effectively [9][10] Financial Performance - Earnings estimates for fiscal years 2026 and 2027 have been revised upward to $10.06 and $12.11, reflecting a bullish sentiment towards the company's growth potential [8][11] - The stock has a long-term earnings growth expectation of 26% and has shown a trailing four-quarter average earnings surprise of 6.7% [15] Competitive Landscape - Sanmina faces significant competition from larger players like Jabil and Celestica, which has impacted its net sales [13] - The company generates approximately 80% of its net sales from international markets, exposing it to geopolitical risks and economic disruptions [13] Strategic Outlook - Sanmina's focus on high-growth industries, combined with its technological leadership and AI-centric approach, positions it for long-term growth [14] - Despite challenges from competition and supply chain issues, the company is expected to benefit from positive investor sentiment and upward earnings revisions [14][15]

Buy: HubSpot (HUBS) - HubSpot reported a revenue increase of over 20% year-over-year and earnings per share (EPS) growth in the high-teens, indicating strong momentum in its core business driven by AI demand [1] - The company has a PEG ratio around 1, suggesting a reasonable valuation for long-term investors looking for growth opportunities [1] Buy: Sanmina (SANM) - Sanmina's revenue grew more than 7% year-over-year, with EPS surging nearly 17% to a record $1.67, driven by strong demand from electronics manufacturing [1] - The company is positioned well to benefit from near-shoring and on-shoring trends, making it a compelling investment opportunity [1] Sell: GoDaddy (GDDY) - GoDaddy's revenue was $1.27 billion, up nearly 7% year-over-year, but shares fell approximately 14% due to disappointing guidance for the fiscal year, projecting revenue around $5.2 billion [1] - The company's promotional pricing strategy is negatively impacting margins, leading to increased pressure in a competitive market [1]

Core Viewpoint - Sanmina Corporation reported strong first-quarter fiscal 2026 results, with significant revenue growth and positive cash flow, although net income faced pressure from higher operating expenses [3][4]. Financial Performance - Revenues increased by 59% year over year, reaching $3.19 billion, surpassing the consensus estimate by $90 million [5]. - Net income on a GAAP basis was $49.3 million or 89 cents per share, down from $65 million or $1.16 per share in the prior-year quarter [4]. - Non-GAAP net income was $132.4 million or $2.38 per share, compared to $80.2 million or $1.44 per share in the prior-year quarter, exceeding the Zacks Consensus Estimate of $2.15 [4]. Segment Performance - The Integrated Manufacturing Solutions segment generated $2.79 billion in revenues, up 72.2% year over year, contributing 87.5% to total revenues [6]. - The Components, Products, and Services segment revenues were $434 million, up 4.33% year over year [6]. - Revenues from Communications Networks and Cloud & AI Infrastructure rose to $1,964 million from $737 million, while revenues from Industrial & Energy, Medical, Defense & Aerospace, and Automotive & Transportation declined to $1.226 billion from $1.269 billion [7]. Profitability Metrics - Non-GAAP gross profit was $297.9 million, up from $180.1 million in the year-ago quarter, driven by higher revenues and improved operational efficiency [8]. - Non-GAAP operating income totaled $192 million compared to $112.7 million in the prior-year period, with a non-GAAP operating margin of 6%, slightly up from 5.6% [8]. Cash Flow and Liquidity - Sanmina generated $178.7 million of net cash from operating activities, compared to $63.9 million in the year-ago quarter [9]. - As of December 27, 2025, the company had $1.42 billion in cash and cash equivalents and $2 billion in long-term debt [9]. - The company repurchased 0.5 million shares for $79 million during the quarter [9]. Future Outlook - For the second quarter of fiscal 2026, revenues are expected to be in the range of $3.1-$3.4 billion, with non-GAAP earnings per share estimated between $2.25-$2.55 [10][11]. - Non-GAAP operating margin is anticipated to be in the band of 5.7-6.2% [11]. Market Sentiment - Estimates for the stock have trended downward over the past month, but the magnitude of revisions appears promising [12][14]. - Sanmina holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [14].

Company Overview - Qualcomm Technologies Inc. and Sanmina Corporation are significant players in the semiconductor and electronics supply chain, with Qualcomm focusing on high-performance chip designs and Sanmina on electronics manufacturing services [1][2] - Qualcomm's product offerings include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems, and a comprehensive intellectual property portfolio covering 4G, 5G, and IoT technologies [1] - Sanmina specializes in engineering and fabricating complex components, providing end-to-end supply chain solutions to Original Equipment Manufacturers across various markets [2] Qualcomm's Competitive Position - Qualcomm is investing in a licensing program for mobile, leveraging multi-core CPUs and Snapdragon mobile platforms to enhance performance and power efficiency [3] - The acquisition of Alphawave Semi allows Qualcomm to expand into high-growth applications such as data centers and AI [3] - Qualcomm is transitioning from a wireless communications firm to a connected processor company, gaining traction in EDGE networking and vehicle-to-everything (V2X) communication systems [4] Challenges Facing Qualcomm - Qualcomm faces intense competition from Intel in the AI PC market, which has impacted its near-term opportunities [5] - Supply constraints due to memory suppliers prioritizing AI data center demand are adversely affecting Qualcomm's handset revenues [5] - The company's operations in China are likely to be impacted by U.S.-China trade tensions, further complicating its revenue outlook [5] Sanmina's Competitive Position - Sanmina is focusing on 42Q connected manufacturing, integrating data from global factories to enhance visibility and decision-making [6] - The company has implemented 42Q connected manufacturing in over 70 factories across 15 countries, connecting more than 35,000 manufacturing equipment pieces [6] - Sanmina's end-to-end solutions streamline processes and lower costs, allowing for greater economies of scale [9] Financial Performance and Estimates - Sanmina is projected to see fiscal 2026 sales increase by 67.9% and EPS by 66.6%, with estimates rising 4.4% in the last 60 days [7][12] - In contrast, Qualcomm's fiscal 2026 sales are expected to decline by 0.2%, with EPS decreasing by 6.5% [11][12] - Qualcomm's stock has decreased by 18.6% year-over-year, while Sanmina has surged by 62.1% over the same period [14] Valuation Comparison - Qualcomm's shares trade at a price/sales ratio of 3.44, significantly higher than Sanmina's 0.55, indicating that Qualcomm appears more expensive from a valuation standpoint [16] - Sanmina's stronger growth estimates and cheaper valuation position it as a more attractive investment option compared to Qualcomm [19] Investment Outlook - Sanmina holds a Zacks Rank of 1 (Strong Buy), while Qualcomm has a Zacks Rank of 5 (Strong Sell), suggesting a more favorable investment outlook for Sanmina [18][19]

Group 1: Western Digital Corporation (WDC) - Western Digital Corporation is a data storage devices and solutions company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 17.4% over the last 60 days [1] - The company has a PEG ratio of 0.62, which is lower than the industry average of 1.36, and possesses a Growth Score of B [1] Group 2: Sanmina Corporation (SANM) - Sanmina Corporation is an integrated manufacturing solutions and components, products, and repair company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 4.4% over the last 60 days [2] - The company has a PEG ratio of 0.56, compared to the industry average of 1.37, and possesses a Growth Score of A [2] Group 3: LATAM Airlines Group (LTM) - LATAM Airlines Group is a passenger and cargo airlines company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 4.3% over the last 60 days [3] - The company has a PEG ratio of 0.40, which is lower than the industry average of 0.57, and possesses a Growth Score of A [3]