Can Flex (FLEX) Turn AI Power Hardware Into a Durable Infrastructure Advantage?

• Flex recently expanded its AI-focused power portfolio at COMPUTEX 2026, unveiling a 110 kW power shelf for NVIDIA Vera Rubin NVL72 platforms, a 30 kW capacitive energy storage system, and the BMR317 converter to support high-density, AI-intensive data centers.
• By pairing these new AI power solutions with deeper use of robotics and automation in its own facilities, Flex is positioning itself as both a supplier and practitioner of AI-enabled infrastructure and manufacturing.
• We’ll now examine how Flex’s new AI data center power solutions could influence the company’s investment narrative built around AI infrastructure.

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Flex Investment Narrative Recap

To own Flex, you need to believe its shift toward AI data center power and cloud infrastructure can support growth while improving thin margins. The new 110 kW power shelf and CESS products fit that thesis by tying Flex more tightly to high-end AI deployments, but they do not change the core near term catalysts of executing the Power and Cloud spin and sustaining margin improvement. Key risks around customer concentration and potential insourcing by hyperscalers remain material.

Among recent announcements, the planned spin off of Flex’s Power and Cloud portfolio into a separate public company stands out in this context. The new AI power solutions shown at COMPUTEX sit inside that portfolio, so their commercial traction could matter for how investors eventually value both Flex and the SpinCo. At the same time, separating the businesses adds execution and margin risk on top of already thin profitability and elevated capital needs.

Yet behind the AI power story, investors should also be aware of how thin margins and rising cost pressures could...

Read the full narrative on Flex (it's free!)

Flex’s narrative projects $32.7 billion revenue and $1.7 billion earnings by 2029. This requires 6.8% yearly revenue growth and a $848.0 million earnings increase from $852.0 million today.

Uncover how Flex's forecasts yield a $81.44 fair value, a 49% downside to its current price.

Exploring Other Perspectives

Some of the lowest analysts were already cautious, assuming revenue would need to climb toward about US$49.6 billion by 2029, yet still warning that rising labor and compliance costs could compress margins. Compared with the consensus view that Flex’s AI and power portfolio could steadily expand profitability, these bearish forecasts highlight how two investors can look at the same COMPUTEX announcement and reach very different conclusions about future earnings power.

Explore 5 other fair value estimates on Flex - why the stock might be worth as much as 13% more than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Flex research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Flex research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flex's overall financial health at a glance.

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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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