Sanmina: Market Finally Realizes Growth Potential (Rating Downgrade)
Sanmina Corporation reported a strong double-beat Q2 driven by accelerated ZT Systems shipments and solid core business momentum. The company benefits from growth in the AI data center market, which is expected to sustain earnings momentum. Despite positive outlook, the stock's valuation is now seen as balanced at $230, prompting a rating downgrade. The market is increasingly recognizing Sanmina's growth trajectory.
- ▪Sanmina Corporation reported a clear double beat in its fiscal Q2 results for the January-March period.
- ▪Revenue was boosted by ZT Systems shipments, which were pulled forward from the second half to Q2.
- ▪The core Sanmina business maintained strong growth momentum amid expanding AI data center demand.
- ▪The company provides a positive earnings outlook supported by continued market expansion in AI infrastructure.
- ▪Analyst estimates SANM stock's fair value at $230, leading to a rating downgrade due to valuation alignment.
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