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Jabil Soars on AI Server Demand Surge
2 Jul
Summary
- Jabil's stock price has surged 68% year-to-date, driven by AI infrastructure demand.
- The company's Intelligent Infrastructure segment revenue increased 21% year-over-year.
- Jabil projects around $13.6 billion in AI-related revenue for fiscal 2026.
Investors are increasingly turning to AI infrastructure suppliers like Jabil (JBL) following a June market selloff. JBL stock has soared 68% year-to-date and 66% in the past six months, propelled by robust demand for AI servers and data-center components.
Jabil, an electronics manufacturing services company, reported a strong third quarter with revenue up 12% year-over-year to $8.8 billion. Its Intelligent Infrastructure segment, which manufactures hardware for cloud and AI data centers, emerged as its fastest-growing business. This segment, encompassing capital equipment, cloud infrastructure, and networking, saw revenue jump 21% year-over-year to $4.2 billion.
Looking ahead, Jabil anticipates its Intelligent Infrastructure segment revenue to increase by 32% year-over-year in Q4. The company now projects approximately $13.6 billion in AI-related revenue for fiscal 2026, marking a 50% increase from fiscal 2025. This optimistic outlook is attributed to Jabil's broad exposure across AI infrastructure, including compute, storage, and networking.
