Sanmina shares jump 20% after AI server sales lift quarterly revenue 84%
Sanmina reported fiscal Q4 revenue of $3.86B, up 84% YoY, beating estimates by $380M. Non-GAAP EPS was $4.43, above the $3.19 estimate. Shares rose 20% after-hours. CEO Jure Sola attributed growth to AI server sales, including contributions from ZT Systems. Full-year revenue was $14.53B, with non-GAAP EPS at $13.28. Guidance for fiscal 2027 projects 27% revenue growth, but margins may decline.
How this was made
The 30-second read
Why it matters
The earnings beat and strong AI revenue growth underscore demand, but the lowered margin outlook and guidance shortfall may trigger a pullback, especially in the short term.
Market read
First‑report earnings and guidance for Sanmina, a key AI server assembler, with fresh numbers that can move the stock and inform sector sentiment.
What to watch
Sanmina's acquisition of ZT Systems' manufacturing arm and the expanding Helios rack program could drive future revenue beyond current guidance.
Background
Sanmina is a contract manufacturer for AI server racks, recently acquiring AMD's ZT Systems manufacturing arm, positioning it as a key supplier for AI data‑center infrastructure.
Market effects
Highlights growing demand for AI server assembly, may benefit other contract manufacturers and AI hardware supply chain players.
U.S. tech manufacturing sector sees mixed signals; investors may rotate from pure-play AI chip makers to broader hardware assemblers.
Signals the pace of AI data‑center build‑out, relevant for global AI infrastructure investors.
Counterpoint
Despite lower guidance, the 20% price jump suggests the market may have already priced in the earnings beat; a contrarian could hold for longer-term upside on AI exposure.
Key entities
- CompanySanmina Corp
U.S. contract manufacturer of AI server components.
- CompanyAMD
Supplier of the ZT Systems manufacturing arm now owned by Sanmina.
