Flex (FLEX): Valuation Check After New AI Infrastructure Platform and Data Center Partnerships with NVIDIA and LG

Flex (FLEX) is back in the spotlight after rolling out a new AI infrastructure platform and teaming up with NVIDIA and LG Electronics, moves that sharpen its focus on modular, energy efficient data center solutions.

See our latest analysis for Flex.

The upbeat reaction to Flex’s latest AI and data center moves comes on top of a strong run, with the stock’s share price return up 61.6 percent year to date and the three year total shareholder return at a striking 280.5 percent. This suggests momentum is still firmly on the side of long term believers.

If this AI infrastructure story has your attention, it could be a good moment to explore other high growth tech and AI prospects using high growth tech and AI stocks.

With Flex’s shares already up sharply and trading only modestly below analyst targets, investors now face a key question: Is this AI fueled surge still leaving meaningful upside on the table, or is future growth largely priced in?

Most Popular Narrative Narrative: 15.1% Undervalued

With Flex closing at $62.41 against a narrative fair value of $73.51, the current price implies a meaningful gap to long term expectations.

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, as evidenced by the 35 percent forecasted annual increase in its data center segment, supporting both topline expansion and higher portfolio margins. Flex's global manufacturing footprint, especially its ability to regionalize and rapidly scale production across North America and Europe, aligns with accelerating customer efforts to de risk and diversify supply chains.

Read the complete narrative.

Want to see how steady sales growth, rising margins, and a leaner share count combine to back that higher value? The earnings math might surprise you.

Result: Fair Value of $73.51 (UNDERVALUED)

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

However, Flex still faces concentration risk with key data center clients and thin margins, which leaves little cushion if hyperscalers insource or demand cools.

Find out about the key risks to this Flex narrative.

Build Your Own Flex Narrative

If you see the story differently, or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your Flex research is our analysis highlighting 3 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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