The pure picks and shovels play #flex #ai #stocks

The company that may be one of the purest picks-and-shovels plays in the AI infrastructure buildout is Flex Ltd.

If you understand this company’s business model, it becomes easier to see where it fits within the five-layer AI cake that Jensen Huang has talked about many times.

Flex sits primarily in the infrastructure and manufacturing layer of the AI stack. The company helps customers design, manufacture, assemble, test, and manage the supply chain for products ranging from AI servers and networking equipment to power systems and data-center infrastructure.

As AI adoption accelerates, demand is growing not only for GPUs and memory chips, but also for the physical infrastructure required to deploy them at scale. Every AI server, networking rack, power system, and data-center buildout requires manufacturing, integration, and supply-chain expertise. That’s where Flex comes in.

Rather than designing the AI chips themselves, Flex benefits from the increasing amount of hardware being deployed across the AI ecosystem. In simple terms, NVIDIA may provide the brains, but companies like Flex help build and deliver the body.

Analysts currently expect Flex to grow earnings by:
• 34% in FY2026
• 53% in FY2027
• 43% in FY2028

Despite this growth outlook, the stock is trading at approximately:
• 34x forward earnings for FY2026
• 22x forward earnings for FY2027

Disclosure: I am a shareholder of Flex Ltd. Based on my own research, I believe the next three years could be very strong for the company as AI infrastructure spending continues to expand.

This post is for educational purposes only and is not financial advice.

#AIInfrastructure #ArtificialIntelligence #DataCenters #StockMarket #LongTermInvesting

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