JBL
The setup
Jabil is getting the classic Wall Street glow-up treatment: a Buy rating, a $450 price target, and a story that says the best part of the AI boom may still be ahead. The pitch is simple: as hyperscalers keep pouring money into AI infrastructure, Jabil gets more volume, more complexity, and — crucially — more margin.
Why the bulls are leaning in
The bull case isn’t just about Jabil being in the right neighborhood. It’s about the company turning that location into leverage. The argument here is that operating margin could climb from 5.7% in FY26 to above 6% in FY27, which doesn’t sound flashy until you remember how much EPS can compound when margins start inching higher like that.
That’s the kind of move that can make a stock look less like a contract manufacturer and more like a quiet compounding machine. Not exactly rockstar energy, but very investor-friendly.
The AI angle, minus the hype fog
Jabil’s diversified portfolio and capacity expansion are doing a lot of the heavy lifting here, along with what’s described as a third hyperscaler win. Translation: the company is building credibility with the big cloud names that are stuffing the AI build-out with cash, racks, and enough hardware to make your local data center feel like a garage band.
- More AI infrastructure demand = more business to fill
- Capacity expansion = more room to capture it
- Margin expansion = the part that can actually move the needle for earnings
Big picture
If the thesis plays out, Jabil’s story shifts from “steady industrials name” to “AI infrastructure beneficiary with improving economics.” And in this market, that second label tends to get you a lot more attention — and maybe a richer multiple to go with it.