Jabil Raises Annual Forecast Amid Strong AI-Driven Data Center Demand

3 Sources

Electronics component maker Jabil increases its full-year profit and revenue forecast, citing strong demand for data center infrastructure driven by AI adoption.

Jabil Raises Annual Forecast on Strong AI-Driven Demand

Electronics component maker Jabil has raised its full-year profit and revenue forecast, citing robust demand for data center infrastructure services. The company, a key supplier to Apple, is capitalizing on the growing appetite for artificial intelligence (AI) technologies, which has led to increased demand for data centers capable of handling complex computing tasks 1.

Impressive Financial Performance

Jabil's third-quarter results have exceeded Wall Street expectations, with revenue rising 15.7% to $7.83 billion, surpassing analysts' average estimate of $7.06 billion. The company's adjusted profit per share came in at $2.55, also beating the expected $2.31 2.

Following this strong performance, Jabil has revised its fiscal 2025 revenue forecast upward to $29 billion, a significant increase from its previous projection of $27.9 billion. The company has also raised its adjusted profit per share forecast to $9.33 from $8.95 3.

AI-Driven Growth and Investment

Source: Economic Times

Source: Economic Times

CEO Mike Dastoor highlighted the company's intelligent infrastructure segment as a critical growth engine, benefiting from accelerating AI-driven demand. This surge in demand is attributed to companies rapidly adopting AI technologies in their operations, necessitating data centers that can support vast amounts of computing power and complex tasks 1.

In response to this trend, Jabil has announced plans to invest $500 million in the United States over the next several years. This investment is specifically aimed at supporting cloud and AI data center infrastructure customers, further solidifying Jabil's position in the growing AI-driven market 2.

Market Response and Future Outlook

The market has responded positively to Jabil's announcement, with the company's shares rising approximately 5% in premarket trading. This increase reflects investor confidence in Jabil's strategy and its ability to capitalize on the growing demand for AI-related infrastructure 3.

As companies continue to integrate AI technologies into their operations, the demand for advanced data center infrastructure is expected to remain strong. Jabil's revised forecast and investment plans indicate that the company is well-positioned to benefit from this ongoing trend in the technology sector.

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