Flex Stock Surges 200% Under New CEO's Strategic Overhaul

When Revathi Advaithi became CEO of Singapore-based Flex in 2019, she stepped into a role she had no prior experience in. The company, ranked No. 10 on the Fortune Southeast Asia 500, faced a volatile market, a recently ousted predecessor, and a stock price hovering near $7. Advaithi, who had only engaged with Flex as a supplier before her appointment, approached the challenge with a pragmatic mindset. “It was a quant problem,” she remarked, aiming to double the stock price within two years or exit the role if the goal failed to materialize [1]. Her strategy centered on a straightforward framework: defining the portfolio, clarifying customer value, and ensuring execution—principles she applied across her career [2].

Advaithi’s first year at Flex involved a rigorous strategic review, culminating in a decision to exit commoditized segments like smartphones and laptops. These markets were marked by weak pricing power and high volatility, a stark contrast to the complex manufacturing opportunities in healthcare, industrials, and automotive—industries where margins and execution quality could drive sustainable growth [1]. The shift required rapid adaptation, particularly after the U.S. government placed Huawei, one of Flex’s largest clients, on the Entity List just two months into her tenure. Compounding this, the global pandemic and logistics disruptions further stress-tested Flex’s operational resilience. Yet Advaithi adhered to her core playbook: “Get your portfolio right. Make sure you can win for customers. Execute.” [1].

The company’s investor messaging also evolved under her leadership. Flex moved away from prioritizing growth at any cost, instead emphasizing capital discipline, margin improvement, and long-term stability. This alignment with strategic clarity over speculative expansion mirrored broader corporate trends favoring leaders with adaptable frameworks over industry-specific expertise [3]. Advaithi’s background added nuance to this approach. After leading Eaton’s North American operations, she took on its global electrical business in 2015, an experience that honed her ability to balance operational rigor with strategic vision [1]. Her decision to join Flex, a less regulated sector, allowed her to impose structured order on fragmented markets [1].

A pivotal early move was Flex’s investment in compute and power infrastructure for data centers, a foresight made before the AI boom. Advaithi anticipated the surge in power demand driven by compute-heavy technologies, positioning Flex to acquire capabilities in data center power systems. Today, roughly 25% of Flex’s business supports AI infrastructure, distinguishing it from peers in contract manufacturing [1].

While her strategy highlights the merits of execution-driven leadership, challenges remain. Advaithi’s lack of industry experience could strain her ability to navigate sector-specific risks, such as regulatory changes in healthcare or supply chain bottlenecks in automotive [1]. Additionally, the reliance on a rigid playbook, though effective in stabilizing operations, may limit agility in responding to unpredictable market shifts.

Flex’s approach reflects a growing corporate preference for skills-based leadership models, where adaptability and strategic clarity outweigh narrow sector knowledge [3]. Advaithi’s tenure underscores the value of structured frameworks in mitigating uncertainties, even when entering uncharted territories. As Flex navigates an evolving landscape, the success of its strategy will depend on its capacity to sustain disciplined execution across high-margin, demand-stable industries.

Sources:

[1] [Flex's CEO didn’t pretend to know the business when she assumed the corner office. Instead, she stuck to what she could control.](https://fortune.com/2025/07/28/flex-ceo-manufacturing-ai/)

[2] [Flex would instead double down on complex manufacturing for sectors like health care, industrials, and automotive—areas where execution mattered and margins...](https://eng.pressbee.net/show4097684.html?title=flex-s-ceo-took-the-job-without-industry-experience-one-battle-te)

[3] [Why companies are leaning into skills-first, AI-enabled...](https://fortune.com/2025/07/28/why-companies-skills-first-ai-enabled-employment-models-cfo/)