Jabil-This Incredibly Cheap Tech Stock Is Soaring, and Artificial Intelligence (AI) Could Send It Higher in 2025 and Beyond

Company Performance - Jabil's fiscal Q1 revenue came in at $7 billion, exceeding the guidance range of$ 6.3 billion to $6.9 billion [8] - Non-GAAP earnings were$ 2 per share, above the midpoint of the $1.85 per share guidance [8] - Excluding the impact of divestiture, revenue was up 1% year-over-year [12] - Adjusted earnings declined by 23% year-over-year due to the divestment of the mobility business [8] - Hurricanes Helene and Milton impacted revenue and margins by 10 to 20 basis points [12] AI and Market Opportunities - Growing demand for liquid-cooled AI servers is expected to create a long-term tailwind [2] - The liquid cooling market in data centers is forecast to grow at 24% annually through 2033, reaching$ 40 billion in revenue [2] - Silicon photonics demand is expected to grow at a 42% CAGR through 2029 [2] - AI is driving demand for semiconductor fabrication and test equipment, expected to continue through FY25 and beyond [16] - The company has strengthened relationships with hyperscale customers for custom AI chips and silicon photonics solutions [16] Financial Guidance and Valuation - Jabil raised its fiscal 2025 revenue guidance to $27.3 billion and adjusted earnings guidance to$ 8.75 per share [5] - Analysts expect double-digit earnings growth from the next fiscal year [17] - Jabil is trading at 14 times trailing earnings, a significant discount to the Nasdaq-100's multiple of 34 [10] - If the market rewards Jabil with a richer valuation, the stock price could potentially double [14] Future Outlook - Consensus revenue forecasts suggest growth in the next couple of fiscal years [9] - The company expects AI-related growth opportunities to drive a return to growth from the next fiscal year [9] - Jabil's momentum is expected to continue into 2025 and beyond, supported by strong quarterly results [11][15]