Sanmina: Attractive Growth Path Ahead

May Investing Ideas857 FollowersFollow5ShareSavePlay(10min)CommentsSummaryI rate Sanmina a buy, driven by transformative exposure to cloud and AI infrastructure following the ZT Systems acquisition.ZT significantly shifts SANM’s revenue mix, boosting cloud infrastructure exposure from 38% to 63% and enabling access to hyperscaler customers and liquid cooling capabilities.SANM’s agreement with AMD positions it to benefit from the upcoming Helios rack rollout, with even a 10% TAM share representing $1.3 billion in potential revenue.At ~12.5x two-year forward PE, SANM trades at a steep discount to peers, offering ~40% upside on multiple re-ratings; risks include working capital needs and CEO succession. Thomas Barwick/DigitalVision via Getty Images Investment overview I give Sanmina (SANM) a buy rating. This is no longer just a diversified EMS name with modest growth. SANM now has much better exposure to cloud infrastructure and a credible path toThis article was written byMay Investing Ideas857 FollowersFollowI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason to write on SeekingAlpha is to use this platform as a tracker for my investing ideas performance, and also to connect with like-minded investors that have the same investing interest.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.