Jabil spotlights data centers as source of strength
Shares of electronics supplier Jabil Circuit — which have languished through most of the year — were the S&P 500’s best performer on an otherwise pretty awful Wednesday, after the company beat earnings expectations and boosted its full-year forecast.
The contract manufacturer — best known as a supplier for Apple iPhones — spotlighted demand from the smoking hot US data center business as a reason for optimism, in reporting its fiscal Q1 earnings.
Michael Dastoor, the company’s CEO told analysts:
The rise of AI is driving demand for semiconductor fabrication and test equipment, which we expect to continue throughout FY 2025 and beyond. In addition, in the data center space, we continue to deepen our existing relationship with our largest hyperscaler with continued strength in their custom AI-driven GPU rack integration business.
The stock, which had lagged the overall Nasdaq Composite’s roughly 30% run-up this year, made up a bit of ground on Wednesday, but it’s still up just under 13%.
The rise of AI is driving demand for semiconductor fabrication and test equipment, which we expect to continue throughout FY 2025 and beyond. In addition, in the data center space, we continue to deepen our existing relationship with our largest hyperscaler with continued strength in their custom AI-driven GPU rack integration business.
The stock, which had lagged the overall Nasdaq Composite’s roughly 30% run-up this year, made up a bit of ground on Wednesday, but it’s still up just under 13%.
