Jabil gives investors an opportunity to capitalize on the fast-growing demand for AI server solutions, and it is a no-brainer buy right now.
Jabil gives investors an opportunity to capitalize on the fast-growing demand for AI server solutions, and it is a no-brainer buy right now.
Nvidia and Micron Technology have made investors significantly richer over the past five years, and there is a solid chance that both artificial intelligence (AI) hardware specialists will surge higher by the end of the decade amid strong demand for AI data center infrastructure.
An investment of $10,000 in Nvidia stock made five years ago is now worth an impressive $102,000. Meanwhile, Micron has turned a similar investment into nearly $135,000 over the same period. The strong earnings growth rate of these semiconductor stocks, along with their attractive valuations, is likely to lead to more gains by 2030. However, there's another emerging AI hardware play that could make investors significantly richer by the end of the decade.
Jabil (JBL -2.30%) is a contract electronics manufacturer that designs, engineers, and manufactures electronic components and hardware for multiple industries. AI has supercharged its growth, and I won't be surprised to see the stock doubling by 2030. Let's see why that may be the case.
Jabil is on track to clock stronger growth due to AI servers
Jabil's fiscal 2026 ended on a strong note. The company reported $36 billion in revenue for the fiscal year ending Aug. 31, up 21% from the prior year. The company's core operating margin increased by 40 basis points last fiscal year, resulting in a 34% increase in non-GAAP earnings per share to $13.09.
$287.14-$6.77 (-2.30%)
NYSE · As of 4:00 PM ET 10/15/26
The growth rate improved in fiscal 2025, when Jabil posted a 3% increase in revenue and a 15% increase in earnings. AI played a central role in boosting Jabil's growth. The company manufactures AI server racks, cooling systems, and power management solutions for major hyperscalers, such as Meta Platforms, Amazon, and Alphabet's Google, as noted by investment bank UBS.
These partnerships helped Jabil deliver $14.4 billion in AI revenue in fiscal 2026, up significantly from $5.4 billion in the previous year. Importantly, Jabil expects its AI revenue to jump to $22.1 billion in fiscal 2027, implying a 54% increase over last year.
Averytin News Financial update.