Jabil (JBL): AI Infrastructure Spending Could Fuel the Next Phase of Growth
We continue to look for companies that benefit from the artificial intelligence boom without being the obvious names everyone is already talking about. Jabil (JBL) stands out as one of those opportunities.
While many investors focus on chipmakers, we believe the companies building the infrastructure behind AI could have just as much staying power. Jabil has positioned itself to capitalize on that trend as hyperscalers continue pouring billions into expanding their AI capabilities.
The numbers behind that opportunity are significant. Four of the world’s largest technology companies — Amazon, Alphabet, Microsoft and Meta — are expected to spend nearly $700 billion on AI initiatives during 2026. Goldman Sachs Research also projects that U.S. hyperscaler AI-related capital expenditures could exceed $1 trillion by the end of the year.
Jabil appears well positioned to capture a share of that spending. The company has deliberately reshaped its business, exiting operations that failed to meet its growth, margin and return-on-investment goals while increasing its focus on faster-growing markets such as AI infrastructure, robotics and automation.
We also like that Jabil’s growth story extends beyond AI. Rising demand in healthcare as new manufacturing capacity comes online should provide another meaningful tailwind over the next several years.
Taken together, we believe these trends could support stronger revenue growth while driving operating margins above 6% by fiscal 2027.
The stock trades around $337 per share after climbing roughly 48% year to date. Despite that impressive run, we believe there could still be room for additional upside as investors gain confidence in the company’s long-term positioning.
UBS recently upgraded Jabil to Buy from Neutral and assigned a $430 price target, implying approximately 28% upside from recent levels.
Wall Street broadly agrees with the positive outlook. According to LSEG data, 10 of the 13 analysts covering Jabil rate the shares either Buy or Strong Buy. The average analyst price target is $426.54, representing roughly 27% upside from current levels.
With AI infrastructure spending expected to remain elevated, a more focused business portfolio and additional growth opportunities in healthcare and automation, we believe Jabil is well positioned to benefit from several powerful long-term trends.
