Jabil-An Incredibly Cheap Artificial Intelligence (AI) Stock to Buy Before It Goes on a Bull Run

Core Viewpoint - Jabil has shown a strong stock price performance with a 27% gain over the past nine months, despite a recent pullback, making it an attractive investment option due to improving growth prospects [1] Company Overview - Jabil provides design, production, and manufacturing services across various sectors, including cloud, data centers, semiconductor equipment, networking, communications, automotive, and transportation [2] - The company has benefited from significant investments in artificial intelligence (AI) infrastructure, prompting an increase in its growth forecast for fiscal year 2025 [2] Financial Performance - Jabil's fiscal 2025 second-quarter results exceeded Wall Street expectations, leading to an increase in full-year guidance [3] - The company now anticipates $27.9 billion in revenue for fiscal 2025, up from a previous forecast of$ 27.3 billion, and raised its earnings per share forecast to $8.95, an increase of$ 0.20 [4] AI Impact - AI is a major driver for Jabil's growth, with an expected $7.5 billion in revenue from AI-related businesses, representing a 40% increase from the previous year [5] - The demand for AI-related products, such as servers and networking equipment, is fueling this growth, with the AI server market projected to grow almost sixfold from 2024 to 2030 [6] Margin Improvement - Jabil's adjusted operating margin in the intelligent infrastructure segment increased by 110 basis points year-over-year, contributing to the raised bottom-line forecast [7] - The favorable growth rates in AI-related markets are expected to further enhance Jabil's margin profile and bottom-line growth [8] Valuation and Investment Potential - Jabil's stock is currently trading at 15 times forward earnings, significantly lower than the Nasdaq-100 index's forward earnings multiple of 25, indicating a solid buying opportunity [9] - If Jabil achieves a premium valuation in the future, its stock price could potentially reach$ 294, representing a 116% increase from its current price [10]