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
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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.
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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.
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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
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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.
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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.
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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!
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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.
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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.
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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.