Stephen Mandel’s Lone Pine and Whale Rock Piled Into This Little Known AI Stock
TTM Technologies (TTMI) saw significant investments from hedge funds like Lone Pine Capital and Whale Rock Capital. The company reported record Q2 sales of $1 billion, up 37% YoY, driven by AI infrastructure demand. TTMI's Data Center and Networking segment grew 91% and is expected to double by 2026. The stock has fallen 21% in five days but trades at 23x 2026 EPS. Hedge funds increased holdings by 37% in Q2, while short interest remains low.
How this was made
The 30-second read
Why it matters
The Q2 sales beat and fund inflows revive interest, but the stock's recent 21% pullback raises valuation concerns.
Market read
TTMI's earnings and fund activity provide a fresh catalyst for traders tracking AI supply‑chain stocks.
What to watch
Integration risk from the Epiq acquisition and rising leverage may constrain upside.
Background
TTMI is a mid‑cap PCB manufacturer that has become a proxy play for AI infrastructure demand.
Ticker impact
TTMI disclosed Q2 sales of $1B, a 37% YoY increase and record revenue, plus fund ownership spikes.
Potential modest upside if price stabilizes above $110; downside risk if AI demand slows.
Revenue growth and fund buying indicate confidence, but valuation multiples and recent price drop temper expectations.
Market effects
AI‑related PCB and RF component suppliers may benefit from continued data‑center spending.
U.S. tech sector could see modest support from AI infrastructure demand.
Limited to investors focused on AI supply chain exposure.
Counterpoint
If AI infrastructure spending peaks, TTMI could face a sharp revenue slowdown and valuation correction.
Key entities
- hedge fundLone Pine Capital
Owned 2.74 M TTMI shares, $512 M stake.
- hedge fundWhale Rock Capital
Increased stake to 4.23 M shares, $791 M.
