TTM Technologies Surges 97% in 6 Months: Should You Buy the Stock?

TTM Technologies TTMI shares have surged 96.8% in the past six months, outpacing the Zacks Electronic Miscellaneous Components industry's return of 7.8% and the broader Computer and Technology sector’s decline of 0.1%.

TTMI has outperformed its peers, Amphenol Corporation APH and Sanmina SANM, which returned 15.5% and 6.4%, respectively, while TE Connectivity TEL declined 4.9% during the period. The rally reflects TTMI's concentrated positioning in two of the fastest growing verticals in electronics manufacturing today, namely artificial intelligence-driven data center infrastructure and defense modernization, areas where Amphenol, TE Connectivity and Sanmina also compete but with considerably wider end market diversification. Let us find out whether investors should buy TTMI stock right now.

TTMI Stock's Performance

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Strong AI Demand to Aid TTMI's Prospects

TTMI is well-positioned to capitalize on the accelerating infrastructure buildout driven by generative AI. The rapid expansion of large language models and AI accelerators is driving sustained demand for increasingly complex printed circuit boards, as data center architectures require denser, higher layer count interconnect solutions to support growing compute workloads. This demand was evident in the fourth quarter, as the combined data center computing and networking end market grew to 36% of total revenues, with data center computing alone posting 57% year on year growth.

TTMI's manufacturing processes are engineered to handle the precision and complexity that next-generation AI hardware demands, serving as a meaningful differentiator. The company engages early with customers on product development, aligning capacity with evolving design requirements ahead of production ramp. Capacity additions at its Dongguan and Guangzhou sites are on schedule, and the Syracuse Diamond facility is expected to deliver first revenues in the second half of 2026.

Defense Modernization to Drive TTMI's Growth

TTMI's aerospace and defense segment is poised to deliver the earnings durability that complements its higher velocity commercial growth. The segment's program alignment spans airborne surveillance radar systems, air defense radar platforms and advanced missile programs, reflecting its entrenched presence across high-priority defense procurement cycles. These are long-duration programs with defined funding frameworks, expected to provide a demand floor that reduces the cyclical sensitivity of TTMI's overall revenue mix. As defense customers increasingly seek integrated modules and subsystems rather than standalone components, TTMI's ongoing move up the value chain positions it to capture a larger share of program spend over time.

Sustained increases in global defense budgets and the accelerating pace of defense modernization programs are expected to create a structurally favorable demand environment for TTMI's advanced interconnect products. The segment accounted for 41% of fourth-quarter revenues, with a book-to-bill of 1.46x for the quarter and a program backlog of $1.6 billion at year-end 2025, indicating the depth of multi-year demand visibility.

TTMI Offers Positive Q1 and 2026 Guidance

For the first quarter of 2026, TTMI expects net sales in the range of $770 million to $810 million and non-GAAP EPS in the range of 64 to 70 cents. For the year 2026, TTMI expects net sales to grow in the 15% to 20% range over fiscal 2025's $2.9 billion revenue base, underpinned by continued demand strength across data center computing, networking and aerospace and defense end markets.

The Zacks Consensus Estimate for first-quarter 2026 EPS is pegged at 66 cents, unchanged over the past 30 days. The consensus mark for revenues is pegged at $782.92 million, up by 20.7% year over year.

The Zacks Consensus Estimate for 2026 EPS is pegged at $3.24, unchanged over the past 30 days. The consensus mark for revenues is pegged at $3.39 billion, up by 16.49% year over year.

TTM Technologies, Inc. Price and Consensus

TTM Technologies, Inc. price-consensus-chart | TTM Technologies, Inc. Quote

TTMI Stock Trades at a Discount to Peers

In terms of the forward 12-month price-to-sales (P/S), TTMI is trading at 2.85X, higher than the industry's 2.26X. However, TTMI's multiple remains well below the broader sector's 6.02X. Within the peer group, Amphenol Corporation commands a forward P/S of 5.26X and TE Connectivity trades at 3.01X, both above TTMI's current multiple, while Sanmina anchors the low end at 0.46X.

TTMI Stock’s Valuation

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Conclusion

TTMI is expected to benefit from strong demand for advanced interconnect solutions driven by generative AI infrastructure buildout and the accelerating pace of global defense modernization. Despite TTMI's robust surge in the past six months, its discounted valuation compared to peers makes it an attractive entry point for new investors.

TTMI currently carries a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Amphenol Corporation (APH): Free Stock Analysis Report

TE Connectivity Ltd. (TEL): Free Stock Analysis Report

TTM Technologies, Inc. (TTMI): Free Stock Analysis Report

Sanmina Corporation (SANM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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