A mix shift toward AI data-center infrastructure and rack-level power/thermal is lifting growth quality. Upside depends on proving paid services and sustaining utilization through capex cycles.

Jabil can compound like an AI-infrastructure industrialization platform (not a commodity EMS) by scaling rack-level power + thermal + integration, then layering higher-margin lifecycle/field services and compliance-grade manufacturing that increases switching costs and supports a structurally higher revenue multiple.

Jabil sits on the compute buildout supply chain (rack, power, cooling, integration) and benefits from time-to-scale compression, but doesn’t own frontier models/compute.

Jabil is already shipping at scale and is executing a mix shift toward AI data-center infrastructure where qualification, reliability, and speed matter more than lowest-cost assembly. The Hanley acquisition pushes Jabil closer to “grid-to-rack” delivery and field capability, which can increase customer stickiness and allow modestly better pricing/margins than classic EMS. If management continues to convert high-growth AI programs into repeatable subsystems plus services (deployment, maintenance, efficiency SLAs, compliance), the market can justify a higher-quality multiple that remains below pure-play product/IP peers but above cyclical assemblers.

The core risk is a reversion-to-mean: AI hardware demand pauses, customers squeeze pricing, and the market values Jabil like a cyclical assembler. Second-order risks are integration/liability from expanding into power + field services (warranty, SLAs), plus working-capital and capacity decisions made at the wrong point in the cycle.

$246.50