Can Jabil’s (JBL) Push Into AI Servers Strengthen Its Edge in Cloud Infrastructure?

• Earlier this month, Axiado Corporation announced a collaboration with Jabil Inc. to co-develop AI-driven cybersecurity hardware and showcase new server technology, including Jabil’s J-422G server, at the OCP Global Summit in San Jose.
• This collaboration highlights Jabil’s increasing focus on next-generation AI and cloud infrastructure solutions, a sector experiencing strong growth and demand for secure and efficient data center products.
• We'll examine how Jabil's expanded presence in AI-optimized server platforms may influence its outlook for future technology sector growth.

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Jabil Investment Narrative Recap

To be a shareholder in Jabil today, you need to believe the company can convert its strength in high-growth AI and cloud infrastructure into consistent profit improvement, despite recent margin pressures and sector headwinds. While new product launches and alliances underscore a push into attractive technology markets, the most important short-term catalyst remains execution in AI-related platforms, and the biggest risk continues to be softness in key end-markets like Connected Living and Regulated Industries. The latest dividend affirmation and buybacks, while promoting shareholder returns, do not materially offset these near-term risks.

The October 2025 announcement of Jabil’s collaboration with Axiado to launch AI-driven cybersecurity hardware is especially relevant. It supports the catalyst of capturing growth in AI infrastructure, providing tangible evidence of the company’s efforts to gain share in secure, high-performance data center solutions amid volatile traditional markets. As these platforms become available to customers, attention will turn to adoption rates and their effect on near-term revenue and margin trends.

However, there is one issue investors should keep in mind, should weakness persist in the Connected Living and Regulated Industries segments, the potential for continued revenue and margin pressure remains a factor to...

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

Jabil's narrative projects $34.3 billion revenue and $1.3 billion earnings by 2028. This requires 6.4% yearly revenue growth and a $723 million earnings increase from $577 million today.

Uncover how Jabil's forecasts yield a $247.38 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided just 2 fair value estimates for Jabil, ranging broadly from US$0.10 to US$247.38. While community opinions differ, ongoing AI platform expansion remains an important catalyst that could shape future growth potential and valuation scenarios.

Explore 2 other fair value estimates on Jabil - why the stock might be worth less than half the current price!

Build Your Own Jabil 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 Jabil research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Jabil research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Jabil'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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