Jabil, Inc. JBL is steadily expanding its portfolio offering to capitalize on the expanding cloud and AI data-center infrastructure market. The AI data-center infrastructure market is currently dominated by hyperscalers such as Google, Amazon and Microsoft.
Hyperscaler data centers effectively handle large AI workloads. Owing to the massive scalability, economies of scale, global reach, lower operating expenses and high computational power the hyperscaler data center offers, enterprises are rushing to utilize these for their AI requirements. AI-as-a-service has gained significant market traction and companies like MSFT and AMZN are expanding their data center infrastructure to capitalize on these trends.
Per Grandview Research AI data center market is expected to reach $60.49 billion in 2030 from $13.62 billion in 2025, with a compound annual growth rate of 28.3%. Jabil has been taking several initiatives to position itself as the ideal U.S.-based manufacturing partner for the hyperscalers. The company is expanding its manufacturing footprint with a $500 million multi-year investment in the Southeast U.S. region. The AI data-center market boom is majorly U.S.-centric. Hence, a strong presence in the country will shield the company from tariff-related uncertainties and geopolitical risks and boost its commercial prospects.
The acquisition of Mikros Technologies has boosted Jabil’s capabilities in liquid cooling and thermal management. Moreover, the strategic collaboration with Endeavour Energy LLC, a sustainable data center infrastructure provider, is allowing Jabil to deliver on-demand data center capacity. By streamlining the AI data center deployment and capacity expansion process, Jabil is significantly reducing overbuild and upfront investment requirements for cloud and hyperscale customers. Such innovation augurs well for long-term growth.
Healthy traction in the cloud & data center infrastructure vertical is driving growth in Jabil’s Intelligent Infrastructure segment. In fiscal 2025, the company expects to generate $7.1 billion in revenues from the data center vertical, indicating staggering 54% year-over-year growth.
How Are Competitors Faring?
Jabil faces fierce competition from Celestica, Inc. CLS and Flex Ltd. FLEX. The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. The company has a strong foothold in the AI data center hardware solutions market, owing to its industry-leading 400G switch products and 800G switch products. Celestica is also expanding its collaboration with other industry leaders, such as AMD and Broadcom to strengthen the portfolio.
Flex is also aggressively moving into the high-growth data center market. Its end-to-end lifecycle services, which include design, sourcing, manufacturing, delivery, and servicing, streamline the process, accelerate delivery. This makes Flex a reliable partner for hyperscaler customers.
JBL’s Price Performance, Valuation and Estimates
Jabil has gained 92.9% in the past year compared with the Electronic-Manufacturing Services industry’s growth of 111.2%.
Going by the price/earnings ratio, the company’s shares currently trade at 18.94 forward earnings, lower than 22.18 for the industry but above its mean of 16.92.
Earnings estimates for Jabil for 2025 have moved up 0.32% to $9.39 per share over the past 60 days, while the same for 2026 has decreased 0.36% to $11.05.
