Core Viewpoint - Jabil is experiencing significant growth driven by the rapid adoption of artificial intelligence (AI) technology, particularly in the data center sector [1][2][3]. Financial Performance - Jabil's fiscal 2025 third-quarter revenue increased by 16% year-over-year, while earnings rose by 35% [5]. - The company has raised its full-year revenue forecast to $29 billion from $27.9 billion [5]. - Fiscal 2025 earnings per share are now expected to be $9.33, up from the previous estimate of $8.95 [6]. AI Demand and Investment - Jabil's AI revenue is projected to grow by 50% this year, reaching $8.5 billion, which will account for nearly 30% of the company's total revenue in fiscal 2025 [7]. - The company plans to invest $500 million to enhance its cloud and AI data center infrastructure manufacturing services [7][8]. - This investment aims to improve the design and manufacturing of complex AI server racks to meet increasing power and cooling requirements [8]. Market Outlook - The AI server market is expected to grow at an annual rate of 34% through 2030, indicating a strong future demand for Jabil's offerings [9]. - Jabil's annual capital expenditures are not expected to increase due to the planned $500 million investment, which should enhance profitability [9]. Stock Performance and Valuation - Jabil's stock has gained 45% in 2025, outperforming the Nasdaq Composite index, which increased by only 1% [11]. - The stock has a forward price-to-earnings ratio of less than 20, which is lower than the Nasdaq-100 index's average of 29 [11]. - Future earnings growth could lead to a higher valuation, with projections suggesting a potential stock price of $314, representing a 50% increase from current levels [12][13].

ab 15 May 2025 Global Research Hon Hai Precision Q125 result: A slight trim to a robust 2025 outlook 1Q25 in-line results, inventory builds ahead of rack deployments Hon Hai reported Weds May 14th with 1Q25 sales in-line down 23% QoQ, to NT $1.64trn, near UBS/Street -25%/-23% QoQ. By segment, smart consumer was seasonally down -40% QoQ (40% of sales), computing -16% QoQ (19% of sales) and components -3% QoQ (7% of sales) while cloud/networking held stable at 34% of sales and servers +50% YoY. Relative to gu ...