Sanmina’s stock narrative has shifted again, with a higher price target driven largely by growing conviction in its AI and communications opportunity set. While the fair value estimate per share is unchanged at $190 and revenue growth expectations are steady at 37.29%, a slightly higher discount rate of 8.50% underscores both improved positioning and heightened execution risk around key partnerships and integration milestones. Stay tuned to see how you can track these evolving assumptions and sentiment shifts before they move the story, and potentially the stock, further.
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🐂 Bullish Takeaways
BofA, led by analyst Ruplu Bhattacharya, has twice lifted its Sanmina target in recent months, first to $150 from $130 and then to $180 from $150, signaling growing confidence in the companys positioning despite maintaining a Neutral rating.
Analysts at BofA highlight the OpenAI and AMD multi billion dollar AI datacenter partnership as a structural positive, given Sanminas role as AMDs preferred NPI partner for building, testing, and readying GPU racks for production.
The latest BofA note cites a strong fiscal Q4 and improving conditions in the communications end market, with inventory correction easing and ZT Systems providing full rack assembly capability, both seen as supportive of Sanminas growth and integration story.
🐻 Bearish Takeaways
Despite successive price target hikes to $180, BofA continues to rate Sanmina at Neutral. This underscores concerns that much of the AI and communications upside may already be reflected in the current valuation.
BofA flags significant execution risk, pointing to Sanmina needing to integrate the ZT Systems business and then successfully ramp programs with AMD. This is occurring against an uncertain macro backdrop that could pressure demand or delay deployments.
Analysts also stress that the financial impact of the OpenAI and AMD partnership is hard to quantify, with key variables including how many GPU racks Sanmina is awarded and the possibility that customers choose competing partners for NPI testing and manufacturing.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NasdaqGS:SANM Community Fair Values as at Dec 2025
Sanmina completed its previously announced share repurchase program, buying back 801,093 shares, or about 1.49% of shares outstanding, for a total of $60.8 million, with no additional shares repurchased between June 29, 2025 and September 27, 2025.
The company issued earnings guidance for the first quarter ending December 27, 2025, projecting revenue in the range of $2.9 billion to $3.2 billion.
The completion of the buyback and the new revenue outlook together indicate that management is focusing on capital returns to shareholders while supporting the current demand environment for Sanmina.
Story Continues
Fair Value: Unchanged at an estimated intrinsic value of $190 per share, indicating no revision to the long term fundamental appraisal.
Discount Rate: Risen slightly from approximately 8.47% to 8.50%, reflecting a modestly higher required return for Sanmina’s cash flows.
Revenue Growth: Effectively unchanged at about 37.29%, signaling a stable outlook for top line expansion assumptions.
Net Profit Margin: Essentially flat at roughly 3.17%, suggesting no material shift in long term profitability expectations.
Future P/E: Increased marginally from about 20.00x to 20.02x, indicating a slightly higher valuation multiple applied to forward earnings.
Narratives are the story behind the numbers, where investors connect their view of a company like Sanmina to concrete forecasts for revenue, earnings, and margins, and then to a fair value. On Simply Wall St’s Community page, used by millions of investors, Narratives make it easy to see how a company’s story links to a valuation, compare Fair Value to the current Price, and get dynamic updates as news, deals, or earnings change the outlook.
Head over to the Simply Wall St Community and follow the Narrative on Sanmina to stay on top of the full story behind the latest target moves and AI optimism:
How the ZT Systems acquisition and AI rack assembly push could drive multi year revenue and EPS growth.
Why margin expansion, automation, and regionalized manufacturing may support a higher long term valuation.
What could derail the thesis, from customer concentration and inventory risk to shifting AI and data center spending.
Curious how numbers become stories that shape markets? Explore Community Narratives
Read the full Sanmina Narrative on Simply Wall St
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.
Companies discussed in this article include SANM.
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