Sanmina Corporation (SANM) is positioning itself as a pivotal player in the artificial intelligence (AI) ecosystem by enhancing its AI data center infrastructure capabilities through strategic acquisitions, including the October 2025 acquisition of ZT Systems’ manufacturing business from Advanced Micro Devices, Inc. (AMD). This buyout significantly boosts Sanmina’s AI and cloud manufacturing capabilities, enabling access to hyperscale cloud providers investing heavily in AI infrastructure.
Over the past year, Sanmina’s stock has increased by 67.2%, but still lags behind the industry growth of 106.4% and competitors Jabil, Inc. (up 45.8%) and Celestica Inc. (up 197.7%). Furthermore, Sanmina’s earnings estimates for fiscal 2026 and 2027 have risen 41.9% and 51.6%, respectively, reflecting positive market sentiment despite heightened competition and geopolitical challenges affecting net sales.
Sanmina has implemented 42Q connected manufacturing across more than 70 factories in 15 countries, integrating over 35,000 pieces of equipment. This initiative aims to enhance real-time data analytics and improve decision-making. However, the company faces significant risks from competition, relying on international operations for 80% of sales, which exposes it to geopolitical disruptions and increased costs from tariffs.
