Sanmina's analyst price target has been raised significantly, climbing from $129.50 to $158.50. Analysts cite optimism around the company's key partnerships in the AI datacenter sector and its expanded manufacturing role, even though there are some uncertainties regarding the full extent of future opportunities.

Analyst Commentary

Recent analyst updates reflect both enthusiasm and caution regarding Sanmina’s evolving role in the AI datacenter industry. As new partnerships and manufacturing responsibilities emerge, expert perspectives highlight opportunities for growth as well as important risks.

Bullish Takeaways

• Bullish analysts note that Sanmina’s elevated price target reflects expectations for the company to benefit directly from significant AI datacenter partnerships and expansions.
• Sanmina is positioned as a key partner for next-generation hardware manufacturing, particularly as AMD’s preferred NPI (New Product Introduction) ally for GPU racks. This could enable strong revenue growth.
• Participation in the rollout of advanced AI infrastructure is expected to enhance Sanmina’s market reputation and support higher long-term valuation multiples.
• Expanded responsibilities in both building and testing complex hardware could drive operational leverage if executed efficiently. This may support margin improvement and future earnings growth.

Bearish Takeaways

• Bearish analysts point out that the financial impact of new partnerships is uncertain, as the magnitude of demand for Sanmina’s manufacturing capacity remains difficult to predict.
• The benefit to Sanmina’s bottom line depends on highly competitive selection processes, with customers retaining the freedom to choose alternative NPI or manufacturing partners.
• If OpenAI or other clients purchase hardware directly or allocate more rack orders to competitors, Sanmina’s actual revenue uplift could be limited despite positive headlines.
• Short- to mid-term valuation improvement could be muted if anticipated growth does not materialize quickly or is offset by shifts in customer strategy.

What's in the News

• Sanmina Corporation issued earnings guidance for the fourth fiscal quarter ending September 27, 2025, expecting revenue between $2.0 billion and $2.1 billion and GAAP diluted earnings per share between $1.21 and $1.31 (Key Developments).
• From March 30, 2025 to June 28, 2025, Sanmina repurchased 197,018 shares, representing 0.37%, for $13.38 million, completing the buyback program with a total of 801,093 shares repurchased for $60.8 million (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has increased from $129.50 to $158.50, representing a significant upward revision in expectations.
• Discount Rate has risen slightly from 8.34% to 8.37%, reflecting a marginal increase in the perceived risk or required return.
• Revenue Growth projections remain essentially unchanged at approximately 6.38%.
• Net Profit Margin is virtually flat and steady at about 3.88%.
• Future P/E ratio has climbed from 22.36x to 27.39x, indicating that higher valuation multiples are being assigned by the market for future earnings.