SANM Focusing More on AI Infrastructure: A Key Growth Driver?
Sanmina Corporation SANM is increasingly pivoting toward artificial intelligence (AI) infrastructure manufacturing by leveraging its advanced engineering, supply chain management and system integration capabilities. The company is expanding its presence in AI servers, storage systems and networking hardware used by hyperscalers and enterprises. As AI workloads scale, demand for high-performance computing infrastructure is driving growth in this segment, enabling it to capitalize on the rapid buildout of AI data center infrastructure.
The buyout of ZT Systems’ data center infrastructure manufacturing business from Advanced Micro Devices, Inc. AMD has added massive scale to Sanmina’s AI and cloud manufacturing competencies, offering a more comprehensive and integrated solution for the fast-growing cloud and AI end-market. AMD also selected Sanmina as a manufacturing partner for its AI rack-scale solutions, enabling faster deployment of cloud AI infrastructure. The collaboration combined AMD’s AI chip-design capabilities with Sanmina’s manufacturing and systems integration expertise to accelerate the deployment of AI systems infrastructure.
By focusing on being a key enabler of the AI ecosystem, the company is positioning itself to capture a greater pie of the rapidly expanding AI hardware value chain. Beyond cloud infrastructure, Sanmina is also targeting edge AI through integrated compute-storage solutions, addressing low-latency use cases like industrial automation and real-time analytics. This AI-infrastructure-focused strategy provides a differentiated way to play the AI boom, with potential for sustained growth as global AI deployment accelerates.
Other Tech Firms Focusing on AI
Microsoft Corporation MSFT is striving to maintain its competitive edge in AI with the introduction of the Agent Store, which creates a new marketplace for AI-powered workplace assistants. The platform features more than 70 agents and provides developers with monetization opportunities through Microsoft 365 Copilot integration. Developers have adopted the Azure AI Foundry application and agent development hub at more than 70,000 enterprises and digital-native companies. Microsoft’s Azure AI Agent Service has been utilized by more than 10,000 organizations to build, deploy and scale agents.
Amazon.com, Inc.’s AMZN expansion of its Bedrock platform has positioned it as a frontrunner in the enterprise AI race. Amazon Bedrock has emerged as a game-changing, fully managed service that offers enterprises seamless access to high-performing foundation models from leading AI companies. The platform’s recent developments, including automated reasoning checks and multi-agent collaboration capabilities, address critical challenges in AI adoption while opening new revenue streams for Amazon’s cloud division.
SANM’s Price Performance, Valuation and Estimates
Sanmina has gained 52.1% over the past year compared with the industry’s growth of 94%.
Image Source: Zacks Investment Research
From a valuation standpoint, SANM trades at a forward price-to-sales ratio of 0.45, below the industry tally of 0.84.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SANM’s earnings for 2026 has been raised 4.4% over the past 60 days.
Image Source: Zacks Investment Research
Sanmina currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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