Jabil (JBL): The Undervalued AI Infrastructure Stock Poised to Follow Dell
💡 Key Takeaway
Jabil (JBL) represents a compelling, undervalued opportunity in AI infrastructure with accelerating growth and significant multibagger potential, trading at just 1.2x sales.
The AI Infrastructure Boom Creates Two Winners
Dell Technologies (DELL) has delivered a stunning 235% rally in 2026, fueled by explosive demand for its AI-optimized servers. The company's recent fiscal Q1 2027 results showed revenue surging 88% year-over-year to $43.8 billion, with its Infrastructure Solutions Group segment skyrocketing 181%.
While Dell's rally has captured headlines, the article highlights another key player: Jabil (JBL). Jabil is a contract electronics manufacturer deeply embedded in the AI supply chain, producing critical data center infrastructure like server racks, power management, and liquid-cooling systems.
Jabil recently reported its own strong growth, with fiscal Q3 2026 revenue up 12% year-over-year to $8.8 billion and non-GAAP EPS jumping 24%. More importantly, the company has consistently raised its AI revenue forecast throughout the year.
The company now anticipates $13.6 billion in AI-related revenue for fiscal 2026, a massive 51% increase from the prior year. This acceleration is transforming Jabil's business, with AI expected to account for 39% of its total revenue this year, up from 30% last year.
Why Jabil's AI Story Matters for Investors
Jabil's growth is accelerating precisely because of AI, making it a pure-play on the infrastructure build-out. The company is winning new business, having added a third hyperscaler customer last quarter and securing follow-on orders from existing clients. This customer momentum suggests the growth runway is long.
Valuation is the critical differentiator. While Dell trades at 2x sales, Jabil trades at just 1.2x sales—a significant discount to the tech-heavy Nasdaq Composite's multiple of 5.3x. This creates a substantial valuation gap for a company with accelerating double-digit growth.
Analysts have turned bullish, significantly raising revenue expectations. The article presents a scenario where Jabil could trade at a conservative 3x sales by fiscal 2028. Based on current revenue estimates, that implies a market cap of $143 billion, or 3.5 times its current value.
The underlying AI end-markets support sustained growth. The global AI server market is forecast to grow 34% annually through 2030, while optical networking—a key Jabil segment—is emerging as the next potential bottleneck in AI infrastructure, presenting another major opportunity.
For investors, this means Jabil offers exposure to the same secular AI infrastructure trend as Dell, but at a much more attractive entry point with similar, if not greater, percentage upside potential from current levels.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Jabil (JBL) is a strong buy for investors seeking undervalued exposure to the AI infrastructure megatrend.
The company combines accelerating, AI-driven fundamental growth with a deeply discounted valuation, creating a compelling risk-reward profile. While execution risks exist in a competitive manufacturing space, the customer momentum with hyperscalers and the sheer size of the AI infrastructure addressable market support the bullish thesis.
What This Means for Me
