Can Sanmina's AI Investment Strategy Drive Future Growth?

Sanmina Corporation SANM is expanding its presence in the AI market by riding on its strong capabilities in advanced electronics manufacturing, system integration, and data center-grade hardware. With the rapid growth of AI-driven computing, the company is positioning itself as a key enabler of AI infrastructure, supporting the production of high-performance servers, networking solutions, and scalable platforms that are critical to modern AI and cloud environments.The ZT Systems acquisition strengthens Sanmina’s ability to provide AI-ready data center infrastructure and better serve hyperscale customers. The company also partnered with specialists like DeepCoolAI to further innovate in the AI market by developing advanced liquid cooling and high-density data center solutions that support next-generation AI-driven workloads more efficiently. Sanmina has introduced products like Viking Edge AI Computational Storage Appliance, which enables efficient edge AI deployment by combining compute, storage, and networking to support low-latency AI workloads.Per a report from Grand View Research, the global AI market is expected to grow rapidly in the future, reaching nearly $3,497.26 billion by 2033 at a CAGR of 30.6%. Sanmina’s significant investments in AI-ready infrastructure and high-performance data center solutions enable it to meet growing AI market demand and achieve sustainable long-term growth.How Are Competitors Performing in the AI Market?The company faces stiff competition from Jabil, Inc. JBL and Celestica Inc. CLS. JBL is adding AI features to its audio products, using AI Sound Boost to optimize sound in real time for clearer, distortion-free audio. Jabil has launched the J-422G server, designed to deliver high efficiency and performance for AI, machine learning, high-performance computing, and large language model workloads.Celestica is also growing in the AI and data center market by providing high-performance hardware, including servers, networking switches, and custom racks, for AI and cloud computing workloads. Celestica recently launched the SD6300 ultra-dense storage system, designed to handle rapid AI data growth while fitting efficiently into standard data center racks.SANM's Price Performance, Valuation & EstimatesSanmina’s shares have rallied 104.5% compared with the Electronics - Manufacturing Services industry’s growth of 100.3%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, the company’s shares currently trade at 16.45 times forward 12-month earnings, lower than the industry.Image Source: Zacks Investment ResearchEarnings estimates for 2025 have remained static at $9.64 over the past 60 days, while the same for 2026 have also remained static at $11.46.Image Source: Zacks Investment ResearchSanmina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL): Free Stock Analysis Report Celestica, Inc. (CLS): Free Stock Analysis Report Sanmina Corporation (SANM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks