The Quiet Company Powering the Entire AI Hardware Boom

Most investors have heard of Nvidia (NASDAQ: NVDA), Super Micro (NASDAQ: SMCI), and Broadcom (NASDAQ: AVGO). But almost no one talks about the company that’s actually building the physical hardware inside the world’s data centers … the server racks, networking systems, photonics modules, and GPU test equipment that make AI possible.

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That company is Jabil (NYSE: JBL).

While flashy AI names dominate the headlines, Jabil sits quietly in the background, designing and manufacturing the components that hyperscalers need to scale their compute clusters. 

The result is a business tied directly to the real, physical infrastructure of AI … but without the valuation premium of most semiconductor or cloud stocks. Here’s why this hidden AI manufacturer is a Strong Buy that could see double-digit gains in the coming year, according to our Zen Ratings system.

A Manufacturing Powerhouse in the Right Place at the Right Time

Jabil has 140,000 employees across 30 countries, and for decades it was viewed as a diversified contract manufacturer. That’s changed.

Today, its Intelligent Infrastructure segment (the division building AI servers, racks, networking hardware, photonics, and power systems) has become the company’s growth engine. Management expects $7.5–$8.5 billion in AI-related revenue this year (fiscal 2025), up 40–50% from the prior year. Few companies in the world are positioned to benefit from the scale-out of AI hardware like Jabil.

As demand for AI servers grows sixfold by 2030, Jabil’s role only becomes more critical.

A Strategic Shift Toward Higher-Margin Businesses

One reason JBL remains compelling is that many investors still view it as a low-margin assembler tied to consumer electronics. 

But Jabil has spent the past several years doing the exact opposite: shedding volatile, low-growth consumer segments and doubling down on AI infrastructure, healthcare equipment, automotive electronics, and industrial automation.

Management expects FY2026 EPS of $11, signaling confidence in margin expansion and durable demand.

U.S. Expansion and Reshoring Tailwinds

Jabil is also investing heavily in onshore manufacturing:

• A new $500M facility in North Carolina will scale AI-related production and support long-term partnerships with cloud and hyperscale customers. This positions JBL as a key beneficiary of both AI supply chain demand and U.S. reshoring incentives.
• A recently secured $3.2B credit facility gives the company ample flexibility to expand, invest, and repurchase shares.

A Rare Play in the AI Ecosystem

Despite its exposure to some of the strongest secular trends in the market (AI, cloud, automation, electrification, and medical technology) Jabil still trades at roughly 19× forward earnings and a price-to-sales ratio below 1.

For investors looking for AI exposure without paying AI multiples, Jabil offers a compelling alternative: a diversified manufacturing leader tied to real physical demand, not just narrative.

However, according to our Component Grades, JBL’s growth potential is even more compelling than its value. It scores a B in Growth, which implies strong sales acceleration (short-term), EPS growth (next 12 months), and profit margin improvement.

Click here to see all JBL’s Component Grades

By the way, we reveal the greatest fallacy in growth investing here.

Top analysts also rate the stock a Strong Buy, with 7-18+% upside from here:

See all JBL price targets here.

Bottom Line| Why I’m Watching JBL

Jabil isn’t a household name. But it may be one of the most important companies in the entire AI supply chain. With accelerating AI-related revenue, a pivot toward higher-margin businesses, strong execution, and a reasonable valuation, JBL represents a quietly powerful way to participate in the long-term growth of global computing infrastructure.

That’s why I’m keeping a close eye on it. You can add it to your own watchlist here.

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