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Investing.com - Stifel has resumed coverage of Jabil (NYSE:JBL) with a Buy rating and a price target of $245.00, highlighting the company’s growing exposure to artificial intelligence infrastructure. The stock, currently trading at $216.14, has delivered an impressive 99.62% return over the past year, according to InvestingPro data.
The electronic manufacturing services (EMS) sector has outperformed the broader market year-to-date, with EMS companies up 28% compared to the S&P 500’s 4% gain. Stifel attributes this multiple expansion to improvements in end-market mix, margin expansion, and increasing exposure to AI-related data center infrastructure investments.
Jabil’s Intelligent Infrastructure business has experienced significant upside in recent quarters driven by AI-related revenue. Following its fiscal third-quarter 2025 financial results, Jabil increased its outlook for AI-related revenue to $8.5 billion, representing 50% year-over-year growth.
This revised forecast is up from the company’s previous projection of $7.5 billion and substantially higher than its original 2025 forecast of $5 billion to $6 billion in AI-related revenue.
Stifel believes the AI infrastructure investment cycle remains in its early stages with long-term growth potential, positioning Jabil to benefit from continued expansion in this sector.
In other recent news, Jabil has reported strong financial results for its third fiscal quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share of $2.55, exceeding the forecasted $2.29, and revenue reached $7.8 billion, surpassing the expected $7.03 billion. Following this robust performance, Jabil raised its full-year revenue guidance to approximately $29 billion. Analysts at BofA Securities have responded by raising their price target for Jabil to $245, citing anticipated growth in artificial intelligence revenues. Similarly, Barclays (LON:BARC) increased its price target to $223, highlighting strength in Jabil’s Cloud and Data Center business segments. UBS also raised its price target to $208, noting significant growth in Jabil’s Cloud/Data Center Infrastructure business. Jabil’s strong performance has been partly attributed to increased AI-related investments, with projected AI revenues of $8.5 billion for fiscal 2025. Additionally, the company announced plans for a new manufacturing site in the U.S. to support further growth in its Cloud and Data Center operations.
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