Sanmina: The Cheapest Proxy To AMD's Explosive Growth

The Straits Strategist5 FollowersFollow5ShareSavePlay(20min)CommentsSummarySanmina is rated BUY following a 33% share price pullback, despite transformative AI-driven growth prospects post-ZT Systems acquisition.ZT Systems integration has shifted SANM’s revenue mix toward high-growth server products, with servers now comprising 60% of revenue and further upside expected.SANM is AMD’s preferred NPI partner, positioning it to benefit from major AMD Helios Rack deals with Meta and OpenAI, representing a multi-billion dollar assembly opportunity.Trading at 12x FY26 P/E—well below EMS peers and AMD—SANM offers compelling re-rating potential as the market underappreciates its AI server assembler status. JHVEPhoto/iStock Editorial via Getty Images Introduction Rating: BUY Sanmina's (SANM) share price is down 33% since announcing disappointing guidance for Q2 in its latest earnings call. I think that this is unfair to Sanmina, especially given the latest exciting developments of the company. Sanmina's business hasThis article was written byThe Straits Strategist5 FollowersFollowOperating from the manufacturing heart of Asia, The Straits Strategist aims to provide a distinct, on the ground perspective on the hardware and technology sectors. Particularly, The Straits Strategist aims to provide coverage over companies in the semiconductor and technology supply chain, which can range across different subsegments - for example, networking, PCBs, hardware and WFE. Many of the prominent tech firms, are after all, heavily dependent on the Asian supply chain, for example: TSMC for semiconductors, Samsung & Hynix for memory, Isu Petasys & Victory Giant for High-layer Count MLBs, which is why it is important to gain an Asian perspective to the supply chain.

The Straits Strategist is a Buy-side Investment Analyst with several years of experience in covering the US technology Supply Chain, and is equipped with a Bachelor in Finance from a reputable UK University. Although lacking in a CFA charter, The Straits Strategist is a CFA candidate who is actively pursuing the qualification. These qualification would provide the necessary skill in providing in-depth research content to the audience.

The Straits Strategist strictly uses a Bottom-Up Methodology in covering stocks, and often looks for idiosyncratic factors that are unique to each company. Every ticker represents a narrative waiting to be decoded. The goal is to uncover that story for the reader, transforming complex supply chain dynamics into clear, actionable BUY, HOLD, or SELL decisions.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.