Jabil Surges with AI-Driven Demand Boosting Profit Forecasts and Stock Prices

Electronics components manufacturer Jabil has recently lifted its full-year profit and revenue forecasts, fueled by robust demand for infrastructure services from data centers. The company's stock saw a nearly 5% increase in pre-market trading, following its third-quarter performance that surpassed Wall Street expectations.
Companies across various sectors are increasingly incorporating artificial intelligence technologies into their operations, significantly driving the demand for data centers—essential for supporting vast computational power and complex tasks. "Our Intelligent Infrastructure division remains a pivotal growth engine, benefiting from the accelerated AI-driven demand," stated CEO Mike Dastoor in an official announcement.
In its role as a major supplier for Apple, Jabil also revealed plans to invest $500 million over the coming years in the United States. This investment aims to bolster infrastructure for cloud computing and AI data center clients. Jabil's expectation for fiscal 2025 revenue has been adjusted upwards to $29 billion, an increase from the previous forecast of $27.9 billion. Additionally, the adjusted earnings per share projection has been raised from $8.95 to $9.33.
According to data compiled by LSEG, Jabil's third-quarter revenue saw a 15.7% increase, reaching $7.83 billion, compared to analysts' average forecast of $7.06 billion. Similarly, the adjusted earnings per share were reported at $2.55, exceeding forecasts of $2.31. This performance, driven by the escalating need for data-driven solutions, has fortified Jabil’s standing amid evolving market demands and technological advancements.

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