TTM Technologies and the Institutional Bet on AI-Driven PCB Demand: Why Think Investments' $46 Million Stake Signals a Strategic Semiconductor Supply Chain Opportunity

The recent $46 million institutional bet by Think Investments LP on TTM Technologies (NASDAQ: TTMI) underscores a compelling convergence of technological innovation, supply chain resilience, and AI-driven demand. By acquiring 793,100 shares-representing 6% of its reportable U.S. equity assets as of September 30-Think Investments has positioned TTM as its fifth-largest holding, signaling confidence in the company's ability to capitalize on the semiconductor industry's transformation. This move, juxtaposed with Franklin Resources Inc.'s 7.8% reduction in its TTM stake, highlights divergent views on the company's trajectory. However, TTM's strategic alignment with AI infrastructure, coupled with its operational expansions and financial performance, suggests that Think Investments' bet is not merely speculative but a calculated play on a sector poised for sustained growth.

Strategic Positioning in the AI Semiconductor Supply Chain

TTM Technologies has emerged as a critical enabler of the AI revolution by addressing the surging demand for advanced printed circuit boards (PCBs). As generative AI models grow in complexity, the need for high-performance PCBs-capable of handling high-speed data transmission and thermal management-has intensified. TTM's recent introduction of high-density HDI PCBs, featuring laser-drilled microvias and fine lines, directly addresses these requirements, positioning the company as a key supplier for next-generation AI infrastructure.

The company's geographic diversification further strengthens its strategic relevance. By acquiring a 750,000-square-foot facility in Eau Claire, Wisconsin, and securing land rights in Penang, Malaysia, TTM is addressing supply chain risks while catering to clients seeking alternatives to China-centric manufacturing. These moves align with global trends toward regionalization and resilience, particularly in defense and data center markets where geopolitical stability is a priority. For instance, TTM's Penang facility is explicitly designed to support customers diversifying their PCB supply chains, offering cost-competitive production in Southeast Asia. Such strategic investments not only mitigate risks but also enhance TTM's capacity to meet the 30% of its revenue now tied to generative AI end markets.

Financial Performance and Operational Momentum

TTM's Q3 2025 results reinforce its growth narrative. Revenue surged 22.1% year-on-year to $752.7 million, driven by a 44% and 35% increase in sales for data center computing and networking markets, respectively. These figures reflect the company's ability to scale with AI demand, as data centers require increasingly sophisticated PCBs to support high-performance computing. Additionally, non-GAAP operating margins improved to 11.1%, up 210 basis points year-on-year, demonstrating operational efficiency amid rising demand.

The company's technological innovations further bolster its competitive edge. TTM's Substrate-Like (SLP) PCB technology, including HyperBGA® and CoreEZ® semiconductor packages, enables signal speeds exceeding 25 GHz and enhances thermal dissipation-critical for AI and defense applications. These advancements, paired with the expansion of its Ultra-HDI PCB production facility in Syracuse, New York, position TTM to dominate high-reliability markets where performance and durability are non-negotiable.

Why Think Investments' Stake Matters

Think Investments' decision to allocate 6% of its reportable U.S. equity assets to TTM is a strategic acknowledgment of the company's dual role as a beneficiary of AI-driven demand and a mitigator of supply chain fragility. By entering Q3 with no prior holdings in TTM, the fund has signaled a shift toward sectors with structural growth drivers. This contrasts with Franklin Resources' reduced stake, which may reflect caution about valuation risks or short-term volatility. However, TTM's 22% year-on-year revenue growth and its leadership in AI-critical PCB technologies suggest that the fund's bet is grounded in long-term fundamentals rather than speculative hype.

Moreover, TTM's stock price surge to all-time highs-driven by its dominance in data-center computing and aerospace markets-indicates strong market validation of its strategy. Think Investments' stake, therefore, aligns with a broader institutional trend of capitalizing on companies that bridge the gap between AI innovation and physical infrastructure.

Risks and Considerations

While TTM's trajectory is promising, investors must remain cognizant of risks, including cyclical demand fluctuations in the semiconductor industry and geopolitical tensions affecting global trade. However, TTM's diversified geographic footprint and focus on high-margin, mission-critical applications (e.g., defense, aerospace) provide a buffer against such volatility. Additionally, its recent facility expansions are designed to scale with demand, reducing the risk of capacity constraints during periods of rapid growth.

Conclusion

Think Investments' $46 million stake in TTM Technologies is more than a financial commitment-it is a strategic endorsement of the company's role in enabling the AI revolution. By leveraging its technological expertise, geographic diversification, and operational scalability, TTM is well-positioned to benefit from the structural shift toward AI-driven infrastructure. For investors, this institutional bet highlights an opportunity to participate in a company that is not only adapting to industry trends but actively shaping them.