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Keysight vs. Sanmina: Which Electronics Stock Is a Better Buy Now?
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Key Takeaways
Keysight is seeing AI data center expansion drive demand for its test and measurement solutions.
KEYS is gaining from NTN, 6G research, satellite communications and radar demand, supporting growth.
SANM is growing on AI servers via ZT Systems integration, plus investments in capacity and cooling.
Keysight Technologies, Inc. (KEYS - Free Report) and Sanmina Corporation (SANM - Free Report) are two key players serving the global technology and electronics ecosystem. Keysight provides electronic design, testing and measurement solutions that support the development of advanced technologies across semiconductor, communications, aerospace and defense, and enterprise markets.
Sanmina is a leading electronics manufacturing services provider that offers integrated design, manufacturing, logistics and supply chain solutions for customers across communications, cloud computing, industrial, medical and defense sectors.
With domain-specific expertise in their respective areas, both Keysight and Sanmina are well-positioned to benefit from increasing investments in artificial intelligence (AI)-driven technologies, digital infrastructure and next-generation networking solutions. Let us delve a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed to capitalize on these industry trends.
The Case for Keysight Stock
The growing expansion of AI data centers is a key growth driver for Keysight. As AI systems become more advanced and require greater computing power, companies need testing and validation solutions to ensure reliable performance. The rising use of GPUs, CPUs, memory, networking equipment and high-speed interconnects is driving strong demand for Keysight’s test and measurement technologies. This momentum helped drive strong order growth, raising its fiscal 2026 revenue outlook.
The evolution of wireless communications is creating another significant growth opportunity. Demand related to non-terrestrial networks (NTN), 6G research, satellite communications and radar systems is supporting growth across its Communications Solutions Group. In addition, increasing adoption of software-defined vehicles, cybersecurity solutions and electric vehicle charging technologies is creating new opportunities for the company.
However, Keysight remains exposed to risks from changing trade policies and global economic conditions. The company has significant exposure to international markets, making it vulnerable to tariffs, export restrictions and geopolitical tensions. Fluctuations in customer spending and delays in large orders can create short-term volatility in its revenues and earnings.
The Case for Sanmina Stock
Sanmina is benefiting from strong demand for cloud and AI infrastructure. Its end-to-end manufacturing model, covering design, engineering, production, testing and logistics, allows customers to work with a single trusted provider throughout the product lifecycle. Growth in AI servers and accelerated computing programs, supported by the ZT Systems business, is driving its revenue growth.
The company has a diversified presence across communications, cloud computing, medical, defense, industrial and automotive markets. Ongoing program wins, a strong order pipeline and investments in advanced manufacturing capabilities support future growth. It is strengthening its position in cloud and AI infrastructure with the integration of ZT Systems. Sanmina is investing in manufacturing capacity and cooling technologies to support growing demand for AI computing systems. Its strong cash position also gives it the flexibility to invest in new opportunities and return cash to shareholders.
However, Sanmina faces risks from global trade uncertainties and faces competition from major players such as Jabil Inc. (JBL - Free Report) and Celestica Inc. (CLS - Free Report) in a highly competitive electronics manufacturing services market. Its significant manufacturing presence in China makes it vulnerable to tariffs, export restrictions and geopolitical tensions. Customer concentration and supply chain challenges could create fluctuations in its revenues and profitability.
How Do Zacks Estimates Compare for KEYS & SANM?
The Zacks Consensus Estimate for Keysight’s 2026 sales implies a year-over-year rise of 28.51%, while that for EPS indicates growth of 42.04%. EPS estimates have been trending northward (up 14%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sanmina’s 2026 sales implies a year-over-year rise of 75.51%, while that for EPS indicates growth of 85.76%. EPS estimates have been trending northward (up 10.1%) on average over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of KEYS & SANM
Over the past year, Keysight has rallied 119.3% compared with the industry’s growth of 130.6%. Sanmina has surged 228.7% over the same period.
Image Source: Zacks Investment Research
Keysight looks more expensive compared to Sanmina from a valuation standpoint. Going by the price/earnings ratio, Keysight’s shares currently trade at 34x forward sales, significantly higher than 22.75x for Sanmina.
Both Keysight and Sanmina expect strong growth in fiscal 2026, supported by increasing investments in advanced technologies, digital infrastructure and next-generation computing solutions, which continue to drive demand across their key end markets. However, with a proprietary technology, stronger business and exposure to advanced technology trends over the next 5 to 10 years, Keysight seems to be a better investment option at the moment.
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Keysight vs. Sanmina: Which Electronics Stock Is a Better Buy Now?
Key Takeaways
Keysight Technologies, Inc. (KEYS - Free Report) and Sanmina Corporation (SANM - Free Report) are two key players serving the global technology and electronics ecosystem. Keysight provides electronic design, testing and measurement solutions that support the development of advanced technologies across semiconductor, communications, aerospace and defense, and enterprise markets.
Sanmina is a leading electronics manufacturing services provider that offers integrated design, manufacturing, logistics and supply chain solutions for customers across communications, cloud computing, industrial, medical and defense sectors.
With domain-specific expertise in their respective areas, both Keysight and Sanmina are well-positioned to benefit from increasing investments in artificial intelligence (AI)-driven technologies, digital infrastructure and next-generation networking solutions. Let us delve a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed to capitalize on these industry trends.
The Case for Keysight Stock
The growing expansion of AI data centers is a key growth driver for Keysight. As AI systems become more advanced and require greater computing power, companies need testing and validation solutions to ensure reliable performance. The rising use of GPUs, CPUs, memory, networking equipment and high-speed interconnects is driving strong demand for Keysight’s test and measurement technologies. This momentum helped drive strong order growth, raising its fiscal 2026 revenue outlook.
The evolution of wireless communications is creating another significant growth opportunity. Demand related to non-terrestrial networks (NTN), 6G research, satellite communications and radar systems is supporting growth across its Communications Solutions Group. In addition, increasing adoption of software-defined vehicles, cybersecurity solutions and electric vehicle charging technologies is creating new opportunities for the company.
However, Keysight remains exposed to risks from changing trade policies and global economic conditions. The company has significant exposure to international markets, making it vulnerable to tariffs, export restrictions and geopolitical tensions. Fluctuations in customer spending and delays in large orders can create short-term volatility in its revenues and earnings.
The Case for Sanmina Stock
Sanmina is benefiting from strong demand for cloud and AI infrastructure. Its end-to-end manufacturing model, covering design, engineering, production, testing and logistics, allows customers to work with a single trusted provider throughout the product lifecycle. Growth in AI servers and accelerated computing programs, supported by the ZT Systems business, is driving its revenue growth.
The company has a diversified presence across communications, cloud computing, medical, defense, industrial and automotive markets. Ongoing program wins, a strong order pipeline and investments in advanced manufacturing capabilities support future growth. It is strengthening its position in cloud and AI infrastructure with the integration of ZT Systems. Sanmina is investing in manufacturing capacity and cooling technologies to support growing demand for AI computing systems. Its strong cash position also gives it the flexibility to invest in new opportunities and return cash to shareholders.
However, Sanmina faces risks from global trade uncertainties and faces competition from major players such as Jabil Inc. (JBL - Free Report) and Celestica Inc. (CLS - Free Report) in a highly competitive electronics manufacturing services market. Its significant manufacturing presence in China makes it vulnerable to tariffs, export restrictions and geopolitical tensions. Customer concentration and supply chain challenges could create fluctuations in its revenues and profitability.
How Do Zacks Estimates Compare for KEYS & SANM?
The Zacks Consensus Estimate for Keysight’s 2026 sales implies a year-over-year rise of 28.51%, while that for EPS indicates growth of 42.04%. EPS estimates have been trending northward (up 14%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sanmina’s 2026 sales implies a year-over-year rise of 75.51%, while that for EPS indicates growth of 85.76%. EPS estimates have been trending northward (up 10.1%) on average over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of KEYS & SANM
Over the past year, Keysight has rallied 119.3% compared with the industry’s growth of 130.6%. Sanmina has surged 228.7% over the same period.
Image Source: Zacks Investment Research
Keysight looks more expensive compared to Sanmina from a valuation standpoint. Going by the price/earnings ratio, Keysight’s shares currently trade at 34x forward sales, significantly higher than 22.75x for Sanmina.
Image Source: Zacks Investment Research
KEYS or SANM: Which Is a Better Pick?
Keysight stock currently sports a Zacks Rank #1 (Strong Buy). while Sanmina carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Keysight and Sanmina expect strong growth in fiscal 2026, supported by increasing investments in advanced technologies, digital infrastructure and next-generation computing solutions, which continue to drive demand across their key end markets. However, with a proprietary technology, stronger business and exposure to advanced technology trends over the next 5 to 10 years, Keysight seems to be a better investment option at the moment.