A Look at Flex (FLEX) Valuation After Raised Revenue Outlook and Expanded NVIDIA Partnership

Flex (FLEX) caught the market’s eye after raising its revenue outlook for 2026, citing continued data center demand in its Power and Cloud businesses. This update came together with news of a collaboration with NVIDIA.

See our latest analysis for Flex.

Against this backdrop of upbeat guidance and a deeper partnership with NVIDIA, Flex’s share price has surged, posting a 32.5% gain over the last 90 days. Momentum has truly been building, and it is even more striking when set against the fact that Flex’s total shareholder return stands at 84.7% for the past year and a remarkable 531% over five years.

If Flex’s strong run and data center momentum have you thinking about what else could be next, broaden your search and spot new opportunities with our See the full list for free.

With such a substantial rally already behind it and Flex’s outlook shining brighter, the question now is whether the current price reflects all of that future growth or if there could still be a compelling buying opportunity ahead.

Most Popular Narrative: 9.4% Overvalued

Flex’s most popular narrative suggests a fair value of $60.43, which is noticeably below the last close at $66.10. This indicates that some market optimism has run ahead of the consensus financial outlook. This gap highlights ongoing tension around what investors are willing to pay for projected data center and cloud-driven growth.

“The ongoing surge in demand for data center and AI infrastructure, requiring integrated power, cooling, and advanced IT hardware, positions Flex for sustained, outsized revenue growth. This is evidenced by the 35% forecasted annual increase in its data center segment, supporting both topline expansion and higher portfolio margins.”

Read the complete narrative.

Wondering what makes this fair value tick? Hint: it hinges on aggressive assumptions about how new verticals, strong margins, and AI-fueled demand could boost future earnings. Only by digging into the full narrative will you uncover just how bold these projections really are.

Result: Fair Value of $60.43 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain. Flex’s heavy reliance on a few major clients and persistently thin margins could quickly shift the company’s growth outlook if market conditions change.

Find out about the key risks to this Flex narrative.

Build Your Own Flex Narrative

If you want to test your own ideas or take a different angle, dive into the data and assemble your own story in minutes. Do it your way

A great starting point for your Flex research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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