Jabil Inc. (JBL): A Bull Case Theory
An aerial view of a modern data center, its server racks humming with activity.
Jabil Inc. (JBL), founded in 1966, has transformed from a circuit board assembler into a global design, manufacturing, and supply chain powerhouse with 140,000 employees across 30 countries. The company's Intelligent Infrastructure segment has become its growth engine, generating nearly 40% of sales, with management forecasting $7.5–8.5 billion in AI-related revenue for fiscal 2025, up 40–50% year-over-year.
Jabil is building critical AI hardware, including server racks, photonics, networking systems, and GPU test equipment, with surging demand supported by a sixfold expansion forecast for AI servers by 2030 and 34% annual growth for AI networking hardware through 2028.
A $500 million U.S.-based AI and data center facility, operational by mid‑2026, underscores a long-term reshoring strategy. Recent earnings beats — $2.55 EPS vs. $2.29 expected and $7.8 billion revenue vs. $7.03 billion forecast — highlight strong execution as management sheds low-growth segments like consumer electronics to focus on high-margin AI, cloud, and advanced optics.
Shares have surged from $95.85 in August 2024 to $203.90 in June 2025, reflecting confidence in Jabil's pivot, though analysts' targets range widely from $150 to $206, underscoring debate over whether momentum is sustainable. Volatility remains pronounced, with a 52-week range representing roughly 55% of the current price.
Macro tailwinds — a weaker U.S. dollar, demand resilience, and strategic U.S.-Mexico manufacturing — offset rising rates and input costs, while disciplined capital allocation, including a $1 billion buyback, signals leadership's conviction. As AI reshapes global infrastructure, Jabil's positioning offers investors leveraged exposure to secular demand with operational resilience, financial discipline, and embedded long-term growth.
Previously, we covered a on Flex Ltd. (FLEX) by Easy Trader in April 2025, which highlighted its resilient supply chain operations, strong free cash flow, and undervaluation despite revenue softness. The company's stock price has appreciated by approximately 56% since our coverage, as operational efficiency and diversification have played out. The thesis still stands as Flex's fundamentals remain solid. VantagePointAI shares a similar view on Jabil Inc. but emphasizes its AI-driven growth.
Jabil Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held JBL at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the potential of JBL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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