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Intel vs. Sanmina: Which AI Infrastructure Stock is a Better Buy Now?
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Key Takeaways
INTC appears better positioned than SANM, backed by stronger stock performance and AI opportunities.
Intel shares rose 184.4% in a year versus Sanmina's 70.3%, but trade at a higher forward price/sales ratio.
Sanmina's 2026 sales are projected to grow 74.2%, outpacing Intel's 17.8%, while Intel leads in EPS growth.
Intel Corporation (INTC - Free Report) and Sanmina Corporation (SANM - Free Report) are two premier U.S.-based semiconductor firms focusing on AI (artificial intelligence), advanced chip technologies and the data center semiconductor ecosystem. While Intel focuses on semiconductor design and manufacturing, Sanmina specializes in electronics manufacturing and complex infrastructure systems.
Intel is currently focusing on AI chips for data centers and PCs, which marks one of the largest architectural shifts for the company in 40 years. The decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics. The foundry operating model is a key component of the company's strategy and is designed to reshape operational dynamics and drive greater transparency, accountability and focus on costs and efficiency.
Sanmina is a key player in the electronics manufacturing services (EMS) industry. It focuses on engineering and fabricating complex components and on providing complete end-to-end supply chain solutions to original equipment manufacturers (OEMs) across various end markets.
Let us try to analyze some of the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.
The Case for INTC
Intel is witnessing healthy traction in AI PCs that have taken the market by storm. Its innovative AI solutions are set to benefit the broader semiconductor ecosystem by lowering costs, improving performance and fostering an open, scalable AI environment. The proliferation of generative AI applications is driving significant investments in data center infrastructure. Although GPUs remain at the center of AI computing, CPUs continue to play an important role in supporting AI workloads. This is creating incremental opportunities for Intel’s Xeon portfolio. The momentum is encouraging as AI-related infrastructure spending is likely to remain healthy, providing Intel with an opportunity to capitalize on rising compute requirements.
Intel is ramping Panther Lake and Wildcat Lake products based on its advanced 18A process technology. Increasing adoption of these products, coupled with an eventual enterprise PC refresh cycle, should support the client business over the long run. The company is also expanding its presence in edge computing and physical AI applications, including robotics. These emerging markets could broaden Intel’s addressable opportunity beyond traditional PCs.
However, Intel derives a significant part of its revenues from China. As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. The company is also lagging in the GPU and AI front compared to peers, such as NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . Leading technology companies are reportedly piling up NVIDIA’s GPUs to build computing clusters for their AI work, driving exponential revenue growth.
The Case for SANM
Sanmina is increasingly focusing on 42Q connected manufacturing that effectively integrates data from customers’ global factories and suppliers’ fleets and creates an up-to-date information base. It offers a unified data ecosystem with real-time data analytics capabilities that significantly improve visibility across the enterprise’s distributed manufacturing and accelerate the decision-making process. Sanmina has deployed the 42Q connected manufacturing in more than 70 factories across 15 countries, connecting more than 35,000 pieces of manufacturing equipment in the cloud. Such a technology-driven, customer-focused approach enables Sanmina to work closely with its customers to anticipate future manufacturing requirements and modify its R&D initiatives accordingly. Attracting and developing strong customer relationships by delivering high-level customer service is one of the key strategies to drive commercial expansion.
Sanmina has acquired the data center infrastructure manufacturing business from AMD to scale up production for cloud and AI hyperscale customers. It is positioning itself as an end-to-end manufacturing partner for AI data centers, spanning accelerated compute, AI racks, liquid cooling, networking, storage and power infrastructure. The company offers end-to-end solutions that include product design, manufacturing, assembly, testing and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. Its vertically integrated manufacturing process brings several other advantages. This approach streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
However, Sanmina has been heavily affected by supply-chain disruptions over the past few years. Owing to current geopolitical events, the company is currently experiencing delays and shortages of critical components, including capacitors, resistors and more. Management expects supply chain issues to persist in the short to medium term. Intensifying competition in the EMS industry has hurt Sanmina’s net sales. The company faces stiff competition from bigger players like Jabil, Inc. (JBL - Free Report) . It generates about 80% of its net sales from products manufactured outside the United States, which exposes it to political and economic disruptions in the operating countries. The company also has major production facilities in China. The recent imposition of tariffs on these countries by the U.S. government has increased the cost of sales and strained margins.
How Do Zacks Estimates Compare for INTC & SANM?
The Zacks Consensus Estimate for Intel’s 2026 sales implies year-over-year growth of 17.8%, while that for EPS indicates a surge of 257.1%. The EPS estimates have trended up 2% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sanmina’s fiscal 2026 sales indicates a year-over-year growth of 74.2%, while that for EPS suggests a rise of 100.5%. The EPS estimates have remained static over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of INTC & SANM
Over the past year, Intel has surged 184.4% compared with the industry’s growth of 34.1%. Sanmina has gained 70.3% over the same period.
Image Source: Zacks Investment Research
Sanmina looks more attractive than Intel from a valuation standpoint. Going by the price/sales ratio, Intel’s shares currently trade at 7.41 forward sales, higher than 0.7 for Sanmina.
In terms of price performance, Intel has outperformed Sanmina, although it is trading at a slight premium. Although there is not much to choose from, INTC appears to be relatively better placed than SANM and might be a better investment option at the moment.
View the Zacks #1 Rank List
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Intel vs. Sanmina: Which AI Infrastructure Stock is a Better Buy Now?
Key Takeaways
Intel Corporation (INTC - Free Report) and Sanmina Corporation (SANM - Free Report) are two premier U.S.-based semiconductor firms focusing on AI (artificial intelligence), advanced chip technologies and the data center semiconductor ecosystem. While Intel focuses on semiconductor design and manufacturing, Sanmina specializes in electronics manufacturing and complex infrastructure systems.
Intel is currently focusing on AI chips for data centers and PCs, which marks one of the largest architectural shifts for the company in 40 years. The decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics. The foundry operating model is a key component of the company's strategy and is designed to reshape operational dynamics and drive greater transparency, accountability and focus on costs and efficiency.
Sanmina is a key player in the electronics manufacturing services (EMS) industry. It focuses on engineering and fabricating complex components and on providing complete end-to-end supply chain solutions to original equipment manufacturers (OEMs) across various end markets.
Let us try to analyze some of the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.
The Case for INTC
Intel is witnessing healthy traction in AI PCs that have taken the market by storm. Its innovative AI solutions are set to benefit the broader semiconductor ecosystem by lowering costs, improving performance and fostering an open, scalable AI environment. The proliferation of generative AI applications is driving significant investments in data center infrastructure. Although GPUs remain at the center of AI computing, CPUs continue to play an important role in supporting AI workloads. This is creating incremental opportunities for Intel’s Xeon portfolio. The momentum is encouraging as AI-related infrastructure spending is likely to remain healthy, providing Intel with an opportunity to capitalize on rising compute requirements.
Intel is ramping Panther Lake and Wildcat Lake products based on its advanced 18A process technology. Increasing adoption of these products, coupled with an eventual enterprise PC refresh cycle, should support the client business over the long run. The company is also expanding its presence in edge computing and physical AI applications, including robotics. These emerging markets could broaden Intel’s addressable opportunity beyond traditional PCs.
However, Intel derives a significant part of its revenues from China. As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. The company is also lagging in the GPU and AI front compared to peers, such as NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . Leading technology companies are reportedly piling up NVIDIA’s GPUs to build computing clusters for their AI work, driving exponential revenue growth.
The Case for SANM
Sanmina is increasingly focusing on 42Q connected manufacturing that effectively integrates data from customers’ global factories and suppliers’ fleets and creates an up-to-date information base. It offers a unified data ecosystem with real-time data analytics capabilities that significantly improve visibility across the enterprise’s distributed manufacturing and accelerate the decision-making process. Sanmina has deployed the 42Q connected manufacturing in more than 70 factories across 15 countries, connecting more than 35,000 pieces of manufacturing equipment in the cloud. Such a technology-driven, customer-focused approach enables Sanmina to work closely with its customers to anticipate future manufacturing requirements and modify its R&D initiatives accordingly. Attracting and developing strong customer relationships by delivering high-level customer service is one of the key strategies to drive commercial expansion.
Sanmina has acquired the data center infrastructure manufacturing business from AMD to scale up production for cloud and AI hyperscale customers. It is positioning itself as an end-to-end manufacturing partner for AI data centers, spanning accelerated compute, AI racks, liquid cooling, networking, storage and power infrastructure. The company offers end-to-end solutions that include product design, manufacturing, assembly, testing and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. Its vertically integrated manufacturing process brings several other advantages. This approach streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
However, Sanmina has been heavily affected by supply-chain disruptions over the past few years. Owing to current geopolitical events, the company is currently experiencing delays and shortages of critical components, including capacitors, resistors and more. Management expects supply chain issues to persist in the short to medium term. Intensifying competition in the EMS industry has hurt Sanmina’s net sales. The company faces stiff competition from bigger players like Jabil, Inc. (JBL - Free Report) . It generates about 80% of its net sales from products manufactured outside the United States, which exposes it to political and economic disruptions in the operating countries. The company also has major production facilities in China. The recent imposition of tariffs on these countries by the U.S. government has increased the cost of sales and strained margins.
How Do Zacks Estimates Compare for INTC & SANM?
The Zacks Consensus Estimate for Intel’s 2026 sales implies year-over-year growth of 17.8%, while that for EPS indicates a surge of 257.1%. The EPS estimates have trended up 2% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Sanmina’s fiscal 2026 sales indicates a year-over-year growth of 74.2%, while that for EPS suggests a rise of 100.5%. The EPS estimates have remained static over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of INTC & SANM
Over the past year, Intel has surged 184.4% compared with the industry’s growth of 34.1%. Sanmina has gained 70.3% over the same period.
Image Source: Zacks Investment Research
Sanmina looks more attractive than Intel from a valuation standpoint. Going by the price/sales ratio, Intel’s shares currently trade at 7.41 forward sales, higher than 0.7 for Sanmina.
Image Source: Zacks Investment Research
INTC or SANM: Which is a Better Pick?
Both Intel and Sanmina currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In terms of price performance, Intel has outperformed Sanmina, although it is trading at a slight premium. Although there is not much to choose from, INTC appears to be relatively better placed than SANM and might be a better investment option at the moment.