We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jabil vs. Viavi: Which AI Infrastructure Stock is the Better Buy Now?
Read MoreHide Full Article
Key Takeaways
JBL and VIAV are gaining from AI infrastructure growth, with both expecting higher sales and profits in 2027.
Viavi surged 101.5% over the past year versus Jabil's 31.3%, driven by their respective growth prospects.
Jabil trades at 15.88 times forward earnings versus Viavi's 20.32, offering a more attractive valuation.
Jabil Inc. (JBL - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) are well-positioned to benefit from growing investments in AI infrastructure and data centers. Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions. It also offers networking, photonics, power and cooling solutions for AI infrastructure.
Viavi is increasingly benefiting from the rapid buildout of AI and hyperscale data center infrastructure. Demand for high-speed optical, Ethernet and network-testing solutions remains healthy as cloud service providers, semiconductor companies and networking vendors invest heavily in increasingly complex AI infrastructure.
With domain-specific expertise in core areas, both Jabil and Viavi are strategically positioned in the tech-adjacent manufacturing landscape and have the wherewithal to cater to the evolving demands of business enterprises and AI/ML technology. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
Management’s focus on improving working capital management and integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal processes is a major tailwind. Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
The Case for VIAV
Viavi offers test and measurement solutions for every stage of AI hardware development, from designing chips to manufacturing optical interconnects and deploying data centers. The industry is rapidly moving from 400G to 800G Ethernet and 1.6-terabit. Each speed upgrade requires validation and protocol testing solutions. This transition to higher-speed optical networks presents a solid growth opportunity for VIAV.
Viavi is also positioning itself for emerging opportunities in next-generation wireless technologies. The company’s Vertex 6.0 advanced channel emulator is designed for 6G and Wi-Fi 7/8 testing. The platform supports up to 400 MHz of instantaneous bandwidth and carrier frequencies of up to 23.6 GHz, while extending across cellular, Wi-Fi, military and aerospace applications. Viavi is also participating in the SHIELD-6G project, using its TeraVM AI RAN Scenario Generator to develop digital twins for AI-driven security testing. These developments broaden Viavi’s wireless-testing opportunity and provide exposure to emerging markets such as 6G, Wi-Fi, AI-RAN and specialized RF testing. Although these markets are still developing, early positioning could give VIAVI additional long-term growth opportunities.
However, over the 10-year observation window in our proprietary model, Viavi’s EPS Linearity is 3.3%, well below the 26.9% industry median and the 100% ideal baseline, even as 10-year EPS growth is 13.2%. The low fit indicates that long-term per-share earnings growth has arrived through a volatile path rather than steady compounding, consistent with shifting telecom demand, product mix and recent acquisition-driven changes in the business. Earnings Linearity helps investors distinguish durable compounding from growth that is interrupted by repeated earnings breaks. Data-center and aerospace and defense strength plus margin expansion could improve the pattern. However, subdued wireless demand and the larger share base following the equity offering remain risks to a smoother per-share earnings trajectory.
How Do Estimates Compare for JBL & VIAV?
The Zacks Consensus Estimate for Jabil’s fiscal 2027 sales and EPS implies year-over-year growth of 24.1% and 34.5%, respectively. The EPS estimates have moved up 6.2% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Viavi’s 2027 sales and EPS indicates year-over-year increase of 23.5% and 62%, respectively. The EPS estimates for VIAV have remained static over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & VIAV
Over the past year, Jabil has surged 31.3% compared with the industry’s growth of 5.8%. Viavi has gained 101.5% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Viavi from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 15.88 forward earnings, lower than 20.32 for VIAV.
Both Viavi and Jabil expect sales and profits to improve in fiscal 2027. Viavi boasts better price performance, although Jabil’s valuation metrics appear comparatively more attractive. Jabil offers a cheaper, more diversified way to participate in AI hardware demand with potentially lower downside risk. With a superior Zacks Rank, JBL currently appears to be a more enticing investment option than VIAV.
View the Zacks #1 Rank List
Image: Shutterstock
Jabil vs. Viavi: Which AI Infrastructure Stock is the Better Buy Now?
Key Takeaways
Jabil Inc. (JBL - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) are well-positioned to benefit from growing investments in AI infrastructure and data centers. Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions. It also offers networking, photonics, power and cooling solutions for AI infrastructure.
Viavi is increasingly benefiting from the rapid buildout of AI and hyperscale data center infrastructure. Demand for high-speed optical, Ethernet and network-testing solutions remains healthy as cloud service providers, semiconductor companies and networking vendors invest heavily in increasingly complex AI infrastructure.
With domain-specific expertise in core areas, both Jabil and Viavi are strategically positioned in the tech-adjacent manufacturing landscape and have the wherewithal to cater to the evolving demands of business enterprises and AI/ML technology. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
Management’s focus on improving working capital management and integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal processes is a major tailwind. Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
The Case for VIAV
Viavi offers test and measurement solutions for every stage of AI hardware development, from designing chips to manufacturing optical interconnects and deploying data centers. The industry is rapidly moving from 400G to 800G Ethernet and 1.6-terabit. Each speed upgrade requires validation and protocol testing solutions. This transition to higher-speed optical networks presents a solid growth opportunity for VIAV.
Viavi is also positioning itself for emerging opportunities in next-generation wireless technologies. The company’s Vertex 6.0 advanced channel emulator is designed for 6G and Wi-Fi 7/8 testing. The platform supports up to 400 MHz of instantaneous bandwidth and carrier frequencies of up to 23.6 GHz, while extending across cellular, Wi-Fi, military and aerospace applications. Viavi is also participating in the SHIELD-6G project, using its TeraVM AI RAN Scenario Generator to develop digital twins for AI-driven security testing. These developments broaden Viavi’s wireless-testing opportunity and provide exposure to emerging markets such as 6G, Wi-Fi, AI-RAN and specialized RF testing. Although these markets are still developing, early positioning could give VIAVI additional long-term growth opportunities.
However, over the 10-year observation window in our proprietary model, Viavi’s EPS Linearity is 3.3%, well below the 26.9% industry median and the 100% ideal baseline, even as 10-year EPS growth is 13.2%. The low fit indicates that long-term per-share earnings growth has arrived through a volatile path rather than steady compounding, consistent with shifting telecom demand, product mix and recent acquisition-driven changes in the business. Earnings Linearity helps investors distinguish durable compounding from growth that is interrupted by repeated earnings breaks. Data-center and aerospace and defense strength plus margin expansion could improve the pattern. However, subdued wireless demand and the larger share base following the equity offering remain risks to a smoother per-share earnings trajectory.
How Do Estimates Compare for JBL & VIAV?
The Zacks Consensus Estimate for Jabil’s fiscal 2027 sales and EPS implies year-over-year growth of 24.1% and 34.5%, respectively. The EPS estimates have moved up 6.2% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Viavi’s 2027 sales and EPS indicates year-over-year increase of 23.5% and 62%, respectively. The EPS estimates for VIAV have remained static over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of JBL & VIAV
Over the past year, Jabil has surged 31.3% compared with the industry’s growth of 5.8%. Viavi has gained 101.5% over the same period.
Image Source: Zacks Investment Research
Jabil looks more attractive than Viavi from a valuation standpoint. Going by the price/earnings ratio, JBL shares currently trade at 15.88 forward earnings, lower than 20.32 for VIAV.
Image Source: Zacks Investment Research
JBL or VIAV: Which is a Better Pick?
Jabil sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Viavi carries a Zacks Rank #3 (Hold) at the moment.
Both Viavi and Jabil expect sales and profits to improve in fiscal 2027. Viavi boasts better price performance, although Jabil’s valuation metrics appear comparatively more attractive. Jabil offers a cheaper, more diversified way to participate in AI hardware demand with potentially lower downside risk. With a superior Zacks Rank, JBL currently appears to be a more enticing investment option than VIAV.