Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting Club
PRO
LivestreamMenuJabil has positioned itself to become a beneficiary of hyperscalers’ massive spending on artificial intelligence, making it a good addition to investor portfolios, according to UBS. The investment bank upgraded the circuit board maker to buy from neutral. It has a $430 price target on shares, implying 28% upside from Monday’s close. “We upgrade Jabil to Buy on a multiyear growth cycle fueled by AI investment from Amazon, Meta, and Google, rising healthcare demand as capacity comes online, and scaling automation and robotics markets,” analyst David Vogt said Monday in a note to clients. “These drivers should lift revenue and [fiscal year 2027] operating margin above 6%.” JBL YTD mountain JBL year to date As artificial intelligence adoption accelerates, big companies are pouring more capital into the technology. Four major hyperscalers – Amazon, Alphabet , Microsoft , Meta and Amazon – are projected to spend a combined nearly $700 billion on their AI initiatives in 2026, according to a spate of filings from the firms. U.S. hyperscaler capital expenditures for AI-related projects could also top $1 trillion by the end of this year, according to a report from Goldman Sachs Research. UBS’ Vogt noted that Jabil has prepared itself to seize opportunities related to those AI buildouts by reorienting its business toward high-growth areas. “Jabil has pruned businesses that did not meet growth, margin, and [return-on-investment] thresholds while investing in faster growth markets like robotics/automation,” he wrote. UBS’ call falls in line with consensus on Wall Street. Of the 13 analysts covering Jabil, 10 have a buy or strong buy on the stock, LSEG data shows. Shares have jumped 48% year to date and gained 2% in the premarket.Read More
About The Author
