Jabil to invest $500 million in Southeast US for AI data centers

ST. PETERSBURG - Jabil Inc. (NYSE:JBL), a $19.4 billion market cap electronics manufacturing giant whose stock is trading near its 52-week high of $182.13, announced plans to invest approximately $500 million over the next several years to expand its manufacturing capabilities in the Southeast United States, according to a company press release. According to InvestingPro data, the company has demonstrated strong momentum with a 35% gain over the past six months.

The investment aims to support cloud and AI data center infrastructure customers through new large-scale manufacturing facilities, capital investments, and workforce development initiatives. The company, which currently generates annual revenue of $27.45 billion, is in the final stages of site selection and expects the new facility to be operational by mid-2026.

"To secure America’s future in artificial intelligence, it’s crucial that we build the hardware that powers AI innovation right here at home," said Matt Crowley, Executive Vice President of Global Business Units at Jabil.

The expansion builds on Jabil’s recent acquisition of New Hampshire-based Mikros Technologies, which specializes in liquid cooling and thermal management solutions for industries including AI data centers, energy storage, and semiconductor testing.

CEO Mike Dastoor described the initiative as "a key element of our long-term strategy to diversify our commercial portfolio and strengthen Jabil’s presence in the U.S."

Jabil, headquartered in St. Petersburg, Florida, currently operates 30 sites across the United States with capabilities in automation, robotics, and process optimization to support production across various industries.

The company provides engineering, supply chain, and manufacturing solutions to global brands and maintains over 100 sites worldwide. The investment announcement comes as demand for AI infrastructure continues to grow in the United States. With a "GOOD" Financial Health Score from InvestingPro, which offers comprehensive analysis and 16 additional ProTips for Jabil, the company appears well-positioned to execute this expansion despite currently trading above its Fair Value.

In other recent news, Jabil Inc. reported its second-quarter earnings for fiscal year 2025, surpassing market expectations with an earnings per share (EPS) of $1.94, exceeding the forecasted $1.83. The company’s revenue also outperformed predictions, reaching $6.73 billion against a forecast of $6.41 billion. Raymond James reaffirmed its Strong Buy rating on Jabil, maintaining a price target of $170.00, citing the company’s robust financial performance and growth in sectors like Intelligent Infrastructure. Jabil’s optimism is further supported by its strategic focus on AI-related projects, with revenue in this area expected to reach $7.5 billion for the fiscal year. Additionally, Jabil and AVL Software and Functions GmbH announced a collaboration to enhance vehicle technology development, aiming to streamline the product development lifecycle for next-generation vehicle technologies. In governance news, Jabil appointed Sujatha Chandrasekaran to its Board of Directors, bringing her extensive experience in digital and information technology to the company. These developments reflect Jabil’s ongoing efforts to strengthen its market position across various sectors.

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