Sanmina: Attractive Growth Path Ahead

I rate Sanmina a buy, driven by transformative exposure to cloud and AI infrastructure following the ZT Systems acquisition. ZT significantly shifts SANM's revenue mix, boosting cloud infrastructure exposure from 38% to 63% and enabling access to hyperscaler customers and liquid cooling capabilities. SANM's agreement with AMD positions it to benefit from the upcoming Helios rack rollout, with even a 10% TAM share representing $1.3 billion in potential revenue.