JBL Gains Traction in AI Infrastructure: Will It Translate Into Revenue Growth?
Jabil is positioning itself as a full-stack partner for AI data centers-covering compute, networking, power distribution, and thermal management. The goal is clear: serve hyperscalers end-to-end and win more share as deployments scale.
The timing looks favorable. The global AI data center market is projected to reach $152.91 billion by 2031, growing at a 25.32% CAGR from a 2026 base of $49.49 billion, per Mordor Intelligence. Source.
What Jabil Has Put in Motion
- Power management: Acquired Hanley Energy Group for $725 million (all cash). Hanley designs and deploys mission-critical power solutions for data centers. Jabil also plans to invest $500 million in the Southeast U.S. to expand manufacturing and workforce aligned to cloud and AI data centers.
- Thermal leadership: Built a strong thermal portfolio via the Mikros acquisition. With customers in India scaling high-speed interconnects, demand is rising for next-gen liquid cooling. Jabil also secured a major hyperscaler win in Mexico-another proof point for its footprint in AI hardware supply chains.
- Revenue outlook: Management now expects AI-related revenue of $12.1 billion in fiscal 2026, implying 35% year-over-year growth (up from a prior 25% view).
How Competitors Are Moving
- Sanmina (SANM): Advancing high-performance servers, networking, and scalable platforms. Its Viking Edge AI Computational Storage Appliance combines compute, storage, and networking for streamlined edge AI.
- Flex (FLEX): Targeting data centers with integrated modular cooling via a partnership with LG Electronics, plus a collaboration with NVIDIA to build modular, energy-efficient AI data centers at scale.
Price, Valuation, and Estimates
- 1-year performance: Jabil +54.3% vs. the Electronic-Manufacturing Services industry at +91.6%.
- Forward P/E: 20.47 vs. industry at 25.78.
- Earnings trajectory: FY2025 estimate up 4.52% to $11.55; FY2026 up 2.52% to $13.41 (past 60 days).
Why This Matters for Management
- Secure capacity early: Power distribution gear and liquid cooling are becoming bottlenecks. Lock in supply, especially for high-density racks.
- Site strategy: Jabil's investments in the Southeast U.S. and a hyperscaler win in Mexico point to maturing nearshore options for diversification and faster lead times.
- Vendor selection: Compare Jabil, Flex, and Sanmina on integration depth (compute, networking, power, cooling), time-to-rack, and modularity. Push for transparent SLAs and lifecycle support.
- TCO and performance: Model watts per rack, PUE impact, and liquid cooling readiness. Ask for validated designs for high-speed interconnects and future density step-ups.
- Risk and delivery: With M&A-driven portfolios (Hanley, Mikros), verify quality systems, IP, and integration timelines. Include penalties for slippage on critical paths.
- KPIs to track: Lead time to build, installed cost per kW, thermal headroom, uptime metrics, and energy cost savings over a 3-5 year horizon.
Bottom Line
Jabil is building a credible end-to-end position in AI data center infrastructure. The acquisitions, manufacturing investments, and thermal focus align with where the bottlenecks are moving. If execution holds, the 2026 revenue target looks achievable-and management teams planning AI capacity should keep Jabil on the shortlist.
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