Core Insights - Jabil Inc. and Sanmina Corporation are leading players in the electronics manufacturing services (EMS) industry, with Jabil being a prominent provider of EMS solutions globally [1][2] - The EMS industry is expected to grow significantly due to digital transformation, AI investments, and IoT adoption [3] Jabil Insights - Jabil has a diverse product portfolio and strong presence in various sectors, including AI data center infrastructure, automotive, and renewable energy [4] - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion in 2030, with a compound annual growth rate of 28.3% [5] - Recent acquisitions, such as Hanley Energy Group and Mikros Technologies, have enhanced Jabil's capabilities in data center power management and thermal management [6] - Jabil operates a robust supply chain network across 100 locations in 30 countries, which enhances its reliability and scalability [7] - Jabil faces competition from companies like Celestica and Flex, but its strategic initiatives position it well for competitive advantage [7] Sanmina Insights - Sanmina emphasizes innovation and product diversification, working closely with customers to adapt to future manufacturing needs [8] - The company has developed a connected manufacturing process that improves decision-making by providing real-time data from global factories [10] - Sanmina has faced supply chain disruptions due to geopolitical issues but is working to strengthen its supply chain and is launching a new facility in Houston, TX [11] - The company is gaining traction in cloud and AI infrastructure markets, although competition from other EMS players remains a concern [12] Financial Performance - Sanmina's 2025 sales and EPS estimates imply year-over-year growth of 72.2% and 59.6%, respectively, with stable EPS estimates over the past 60 days [13] - Jabil's 2025 sales and EPS estimates indicate year-over-year growth of 8.8% and 18.46%, with a 4.52% upward trend in EPS estimates over the past 60 days [15] - Over the past year, Sanmina's stock has increased by 92.2%, while Jabil's has risen by 47.3% [16] - From a valuation perspective, Sanmina's shares trade at a forward P/E ratio of 15.11, compared to Jabil's 18.49 [17] Investment Outlook - Both companies are expected to benefit from net sales growth driven by AI proliferation, but Sanmina faces ongoing supply chain challenges [19] - Jabil's strategic acquisitions and product innovations position it favorably in the AI hardware supply chain, making it a more attractive investment option with a Zacks Rank 2 (Buy) [19][18]