How Flex’s (FLEX) Liquid Cooling Deployment at Equinix Could Recast Its Investment Narrative

• Flex recently announced the deployment of its advanced, vertically integrated liquid cooling solution at the Equinix Co-Innovation Facility in Ashburn, Virginia, incorporating JetCool’s technology into a single rack to support high-density data center environments.
• This move highlights Flex’s ability to deliver highly efficient, facility-ready cooling systems that address rising power and sustainability demands in next-generation compute infrastructure.
• Let's now explore how Flex's expansion into cutting-edge liquid cooling at Equinix may reshape the company's broader investment narrative.

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Flex Investment Narrative Recap

To believe in Flex as a shareholder means buying into its vision of powering next-generation compute environments through integrated manufacturing and innovation in data center hardware, including advanced cooling solutions. While the latest Equinix deployment reinforces Flex’s relevance in AI and data center infrastructure, it does not meaningfully change the primary short-term catalyst, demand growth from key hyperscaler customers, or mitigate ongoing exposure to customer concentration risk, which remains the largest threat to earnings stability.

Flex’s recent collaboration with NVIDIA to produce modular data center systems ties directly into demand catalysts tied to AI infrastructure, underlining how Flex aims to address both power and cooling requirements for high-density environments. This is particularly relevant as customer demand diversifies and supply chain reliability becomes more important, underscoring Flex’s position as a manufacturing partner of choice in fast-moving technology sectors.

Yet even as Flex’s liquid cooling advances impress, investors should also be aware that, by contrast, concentrated reliance on a few large clients continues to...

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

Flex's outlook anticipates $29.1 billion in revenue and $1.3 billion in earnings by 2028. This is based on a 3.7% annual revenue growth rate and a $409 million increase in earnings from the current $891 million.

Uncover how Flex's forecasts yield a $74.37 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Five Simply Wall St Community members value Flex between US$45 and US$74.37 per share. The wide range reflects differing outlooks as customer concentration risk remains top of mind for performance.

Explore 5 other fair value estimates on Flex - why the stock might be worth as much as 30% more than the current price!

Build Your Own Flex Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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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