Can Sanmina's Thrust on 42Q Connected Manufacturing Boost Revenues?

Core Insights - Sanmina Corporation (SANM) is focusing on 42Q connected manufacturing to enhance data integration from global factories and suppliers, improving decision-making and visibility across manufacturing processes [1][3] Group 1: 42Q Connected Manufacturing - The unified data ecosystem consolidates supply data into a single manufacturing data lake, enabling faster planning and improved responsiveness to market changes [2] - Real-time data analytics optimize inventory, reduce downtime, and enhance order flow, while also improving quality monitoring to respond quickly to deviations [2] - Sanmina has implemented 42Q in over 70 factories across 15 countries, connecting more than 35,000 manufacturing devices in the cloud [3] Group 2: Competitive Landscape - Sanmina faces competition from Jabil, Inc. (JBL) and Celestica Inc. (CLS) in the electronic manufacturing services sector [4][5] - Jabil reported revenues of $8.3 billion, up from $6.96 billion year-over-year, driven by demand in healthcare, packaging, and AI-related sectors [4] - Celestica's quarterly revenues reached $3.19 billion, a 27.8% increase year-over-year, supported by strong demand for networking products and AI-driven data center investments [5] Group 3: Financial Performance and Valuation - Sanmina's stock has increased by 104.1% over the past year, slightly below the industry's growth of 105% [6] - The company trades at a forward price-to-sales ratio of 0.58, which is lower than the industry average of 0.89 [7] - The Zacks Consensus Estimate for Sanmina's earnings for 2025 has increased by 38.9% over the past 60 days [8]