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Can Jabil's Alliance With Sivers for AI Data Center Boost Its Shares?
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Key Takeaways
JBL partners with Sivers Semiconductors to develop 1.6T LRO optical transceivers for AI data centers.
JBL's LRO module enables Sivers Semiconductor's DFB lasers to cut energy use up to 2.5x.
800G and higher optical transceivers' demand is likely to rise, backing JBL's early 1.6T investment push.
Jabil Inc. (JBL - Free Report) has collaborated with Sivers Semiconductors AB, a global leader in photonics and wireless technologies, to strengthen its position in next-generation data center technology. The partnership focuses on developing ultra-high-speed, energy-efficient optical transceivers for growing artificial intelligence (AI) data center demands.
Under the agreement, Jabil will develop a 1.6-terabit Linear Receive Optical transceiver by integrating Sivers’ advanced Distributed Feedback lasers. The module is designed to deliver fast data transmission while reducing energy consumption up to 2.5 times compared with existing solutions.
The demand for 800G and higher optical transceivers is expected to gain precedence. Jabil’s early investment in 1.6T technology helps it stay ahead and meet future needs for faster and more energy-efficient networking. The company has also partnered with Axiado Corporation to develop AI-powered cybersecurity solutions for next-generation data center servers.
Jabil uses its advanced engineering skills to build powerful hardware, such as servers and photonics solutions and provide infrastructure support, including rack integration, cooling and supply chain services, helping AI data centers operate faster, more efficiently and at large scale, making it a key player in advanced AI infrastructure development.
How Are Competitors Advancing in the AI Space?
Jabil faces competition from Celestica Inc. (CLS - Free Report) and Flex Ltd. (FLEX - Free Report) . Celestica is building high-speed networking and switching systems that connect powerful AI chips inside data centers. It is working with Advanced Micro Devices, Inc. (AMD - Free Report) in the Helios Rack-Scale AI Platform to support large AI computing clusters. Celestica provides end-to-end data center solutions, including design, manufacturing and system integration for AI and cloud customers.
Flex is developing integrated AI data center systems that combine power, cooling and computing in a single platform. It helps companies deploy AI data centers faster by using pre-designed, scalable infrastructure solutions. Flex provides manufacturing and supply chain support to handle large-scale AI and cloud infrastructure needs.
JBL’s Price Performance, Valuation and Estimates
Jabil has rallied 125.8% in the past year compared with the industry’s growth of 183.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 22.46 forward earnings, lower than 26.65 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for Jabil for fiscal 2026 have moved up 6.2% to $12.30 per share over the past 60 days, while the same for fiscal 2027 has increased 6.9% to $14.35.
View the Zacks #1 Rank List
Image: Bigstock
Can Jabil's Alliance With Sivers for AI Data Center Boost Its Shares?
Key Takeaways
Jabil Inc. (JBL - Free Report) has collaborated with Sivers Semiconductors AB, a global leader in photonics and wireless technologies, to strengthen its position in next-generation data center technology. The partnership focuses on developing ultra-high-speed, energy-efficient optical transceivers for growing artificial intelligence (AI) data center demands.
Under the agreement, Jabil will develop a 1.6-terabit Linear Receive Optical transceiver by integrating Sivers’ advanced Distributed Feedback lasers. The module is designed to deliver fast data transmission while reducing energy consumption up to 2.5 times compared with existing solutions.
The demand for 800G and higher optical transceivers is expected to gain precedence. Jabil’s early investment in 1.6T technology helps it stay ahead and meet future needs for faster and more energy-efficient networking. The company has also partnered with Axiado Corporation to develop AI-powered cybersecurity solutions for next-generation data center servers.
Jabil uses its advanced engineering skills to build powerful hardware, such as servers and photonics solutions and provide infrastructure support, including rack integration, cooling and supply chain services, helping AI data centers operate faster, more efficiently and at large scale, making it a key player in advanced AI infrastructure development.
How Are Competitors Advancing in the AI Space?
Jabil faces competition from Celestica Inc. (CLS - Free Report) and Flex Ltd. (FLEX - Free Report) . Celestica is building high-speed networking and switching systems that connect powerful AI chips inside data centers. It is working with Advanced Micro Devices, Inc. (AMD - Free Report) in the Helios Rack-Scale AI Platform to support large AI computing clusters. Celestica provides end-to-end data center solutions, including design, manufacturing and system integration for AI and cloud customers.
Flex is developing integrated AI data center systems that combine power, cooling and computing in a single platform. It helps companies deploy AI data centers faster by using pre-designed, scalable infrastructure solutions. Flex provides manufacturing and supply chain support to handle large-scale AI and cloud infrastructure needs.
JBL’s Price Performance, Valuation and Estimates
Jabil has rallied 125.8% in the past year compared with the industry’s growth of 183.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 22.46 forward earnings, lower than 26.65 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for Jabil for fiscal 2026 have moved up 6.2% to $12.30 per share over the past 60 days, while the same for fiscal 2027 has increased 6.9% to $14.35.
Image Source: Zacks Investment Research
Jabil stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.