How Flex’s Expanded U.S. AMD Instinct Production At Flex (FLEX) Has Changed Its Investment Story

• In early March 2026, Flex announced that it is expanding its collaboration with AMD to manufacture the AMD Instinct MI355X AI platform at its Austin, Texas headquarters, adding U.S.-based, high-volume production of complete liquid‑cooled GPU systems to its existing advanced manufacturing footprint.
• This deepened AMD partnership highlights Flex’s role not just as a contract manufacturer but as a full systems integrator for complex, AI‑ready data center hardware produced onshore in the United States.
• We’ll now examine how this expanded U.S. manufacturing of AMD’s Instinct AI platforms could influence Flex’s broader investment narrative.

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Flex Investment Narrative Recap

To own Flex, you need to believe it can turn its broad manufacturing footprint and AI data center capabilities into steadily improving margins and cash generation. The expanded AMD Instinct MI355X production in Austin reinforces the data center growth story, but it does not remove near term risks around customer concentration and structurally thin margins, which remain the key swing factors for the stock.

The most relevant recent update alongside the AMD news is Flex’s fiscal 2026 outlook, where it guided revenues to US$27.2 billion to US$27.5 billion and targeted a 6 percent adjusted operating margin in fiscal 2027, a year earlier than previously planned. Together, the AMD collaboration and this guidance put more attention on whether higher value AI and data center work can offset margin pressure from cyclical and lower margin segments.

Yet even as AI demand builds, investors should be aware that Flex’s reliance on a concentrated group of large cloud customers could...

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

Flex’s narrative projects $29.1 billion revenue and $1.3 billion earnings by 2028. This requires 3.7% yearly revenue growth and roughly a $0.4 billion earnings increase from $891.0 million today.

Uncover how Flex's forecasts yield a $76.12 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already assuming revenue of about US$29.7 billion and earnings near US$1.4 billion by 2028, which is far more bullish than consensus and could look either more achievable or too aggressive once the expanded AMD Instinct work and related data center risks are fully reflected in updated views.

Explore 5 other fair value estimates on Flex - why the stock might be worth just $63.56!

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 4 key rewards and 1 important warning sign 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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