Sanmina's 15min chart shows RSI oversold and KDJ golden cross.

Based on the 15-minute chart of Sanmina, the Relative Strength Index (RSI) has reached oversold levels, and the KDJ indicator has triggered a golden cross at 10/07/2025 12:30. This indicates that the stock price has dropped rapidly and is currently trading below its fundamental support levels. However, the momentum of the stock price is shifting towards an upward trend and has the potential to further increase in value.

Sanmina's stock has experienced significant volatility in recent months, driven by key strategic developments and market sentiment. On October 6, 2025, Sanmina's stock surged by over 22%, reaching a new 52-week high of approximately $158. This dramatic increase was largely attributed to news of a landmark AI chip supply partnership between Advanced Micro Devices (AMD) and OpenAI Sanmina Stock Skyrockets on AMD-OpenAI AI Deal – Key Financials, Trends & Outlook 2025^[1].

The partnership, which includes a "six gigawatt" purchase agreement for OpenAI to acquire hundreds of thousands of high-end AI chips from AMD, has had a spillover effect on Sanmina's stock. As AMD's preferred manufacturing partner for AI hardware, Sanmina stands to benefit from the increased demand for AI server racks and systems . This strategic alignment has been bolstered by Sanmina's acquisition of ZT Systems' data center manufacturing business from AMD for up to $3 billion in cash and stock, which is expected to double Sanmina's revenue within three years .

Sanmina's stock performance in 2025 has been remarkable, with a one-year growth of nearly 70%. The company's aggressive share buyback program, which has seen over 1 million shares repurchased in Q2 alone for $84 million, has also contributed to this impressive performance . Despite the stock's recent surge, analysts caution that the valuation may be overvalued, with Sanmina's P/E ratio near historic highs .

The Relative Strength Index (RSI) has reached oversold levels, and the KDJ indicator has triggered a golden cross, indicating that the stock price has dropped rapidly and is currently trading below its fundamental support levels. However, the momentum of the stock price is shifting towards an upward trend, with the potential for further value increase .

Market analysts remain optimistic about Sanmina's prospects, with a consensus rating leaning towards a "Moderate Buy" and an average price target of around $126. However, the exact impact of the AMD-OpenAI partnership on Sanmina's financial performance is still uncertain and will depend on how many systems AMD outsources to Sanmina and whether OpenAI integrates the systems in-house or relies on turnkey solutions .

In conclusion, Sanmina's stock has shown remarkable resilience and growth in 2025, driven by strategic partnerships and aggressive share buybacks. While the stock's recent valuation may be overvalued, the company's exposure to high-growth markets like AI and cloud infrastructure suggests that continued execution will be critical to sustaining the rally.