How Flex’s Liquid Cooling Deployment with Equinix Could Reshape the FLEX Investment Story

• Flex announced it has deployed a fully integrated, rack-level liquid cooling solution at the Equinix Co-Innovation Facility in Ashburn, Virginia, incorporating JetCool’s advanced liquid cooling technologies and demonstrating significant reductions in data center water and power consumption.
• This collaboration underscores Flex’s unique ability to address global data center challenges with end-to-end manufacturing, supply chain expertise, and lifecycle support for next-generation high-density computing environments.
• We will examine how Flex’s new liquid cooling deployment with Equinix could impact its investment narrative, especially as demand for efficient data center solutions grows.

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Flex Investment Narrative Recap

To be a shareholder in Flex, you need to believe that the company’s end-to-end manufacturing strength and rapid innovation in data center cooling are well positioned to catch the ongoing demand for AI and cloud infrastructure. The recent Equinix liquid cooling deployment showcases Flex's technical expertise, but does not substantially alter the key short-term catalyst, which remains continued revenue growth from major hyperscale clients. The biggest risk continues to be Flex’s exposure to customer concentration within the data center segment; this news does not mitigate that challenge in a material way.

Among Flex’s recent announcements, its expanding partnership with NVIDIA to create modular AI factory systems is the most relevant complement to the Equinix news. Both highlight how Flex is deepening relationships with leaders in high-performance computing. These collaborations tie directly into the company’s major growth catalyst, the global shift toward more intensive, energy-efficient data center infrastructure, and reinforce Flex’s importance in that supply chain.

Yet, unlike near-term growth drivers, investors should also be mindful of the ongoing risk from customers pursuing their own in-house cooling and power manufacturing solutions...

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

Flex is projected to reach $29.1 billion in revenue and $1.3 billion in earnings by 2028. This outlook assumes a 3.7% annual revenue growth rate and an increase in earnings of approximately $409 million from the current $891 million.

Uncover how Flex's forecasts yield a $74.37 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Five fair value estimates for Flex from the Simply Wall St Community range widely from US$45.00 to US$74.37 per share. While many see upside in Flex riding industry demand for data center innovation, opinions differ on the company’s ability to manage customer concentration and margin risks, take a closer look at these contrasting views.

Explore 5 other fair value estimates on Flex - why the stock might be worth as much as 24% 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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