Jabil, Inc. JBL recently announced that it has formed a strategic collaboration with Adani Group in India. The partnership aims to establish a world-class, vertically integrated AI data center infrastructure manufacturing platform in India. The focus is on manufacturing AI racks, and several supporting infrastructures are needed for AI data centers.
Jabil boasts strong expertise in engineering, manufacturing expertise, supply chain capabilities and hyperscale data center solutions. Combining this with Adani Group’s strength in Infrastructure, logistics and green energy assets and the rapidly expanding data center operations in India, is expected to give Jabil a competitive edge in the Asia Pacific region. The initiative targets a global market opportunity exceeding $3 trillion over the next seven years, driven by a rapid surge in AI-related investments by hyperscalers and large enterprises.
The AI racks will integrate AI GPU servers, CPUs, networking switches, storage, power distribution, liquid cooling, cabling and management hardware. Hyperscalers like Amazon, Google and Microsoft are deploying thousands of high-density racks to support AI workloads. By expanding its manufacturing capacity, Jabil aims to position itself as a reliable manufacturing partner for these hyperscalers.
How Are Competitors Faring?
Jabil faces strong competition from Flex Ltd FLEX and Sanmina Corporation SANM in the AI infrastructure market. Sanmina is benefiting from rising demand for cloud and AI infrastructure programs, supported by its vertically integrated manufacturing model and broad global footprint. It is expanding its manufacturing footprint in Houston. The facilities will be used to develop leading-edge energy products supporting AI data centers. Sanmina’s Vertical integration helps control critical steps, shorten time to volume production and adjust production flows as program needs change. The approach is becoming more relevant as the company scales cloud and AI infrastructure programs.
Flex’s global manufacturing scale remains a key advantage. Its footprint supports regionalization by bringing manufacturing closer to end markets, reducing logistics risk and meeting evolving trade requirements. Management continues to position Flex for the AI era through integrated capabilities across compute integration, cooling and power, and it has cited AI-enabled systems to standardize processes and lift factory productivity.
JBL’s Price Performance, Valuation and Estimates
Jabil has gained 113.3% in the past year compared with the Electronic-Manufacturing Services industry’s growth of 154.3%.
Going by the price/earnings ratio, the company’s shares currently trade at 27.48 forward earnings, lower than 29.04 for the industry but above its mean of 21.69.
The company’s earnings estimates for 2026 have remained unchanged over the past 60 days.
Jabil carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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