1 Incredibly Cheap Stock to Buy Before It Starts Soaring Thanks to Artificial Intelligence (AI)

Core Viewpoint - Jabil is experiencing a revenue decline due to market challenges but is optimistic about future growth driven by artificial intelligence (AI) [1][3][5] Financial Performance - For fiscal Q2, Jabil reported adjusted earnings of $1.68 per share on revenue of $6.8 billion, missing Wall Street's revenue forecast of $6.89 billion and down 16% from $8.1 billion year-over-year [2] - The company expects $6.5 billion in revenue for the current quarter, significantly below the consensus estimate of $7.37 billion, and has lowered its fiscal-year revenue guidance to $28.5 billion from $30.89 billion [2][3] Market Outlook - Jabil's previous guidance for fiscal 2024 revenue was $31 billion, but it has been revised down due to lower revenue in markets such as 5G and renewable energy [3] - Management anticipates a turnaround in fiscal 2025, with AI expected to play a central role in driving growth [3][4] AI Market Impact - Jabil is seeing increased demand for AI-related services, particularly in healthcare and cloud businesses, with AI GPU volume in the first half of 2024 being 200 times that of 2023 [3][4] - The company projects AI-related revenue could increase by 20% in fiscal 2025 to $6 billion, potentially accounting for 20% of total revenue [4] Valuation and Investment Potential - Jabil's stock is currently trading at 0.51 times sales, 21 times trailing earnings, and 16 times forward earnings, indicating an attractive valuation [6] - Analysts have a median 12-month price target of $150, with a high target of $160, suggesting potential upside if growth accelerates due to AI [7]