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SANM Declines 25% in the Past Six Months: Should You Buy the Stock?
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Key Takeaways
Sanmina has declined 24.8% in six months, outperforming its industry amid strong long-term growth prospects.
Sanmina's ZT Systems acquisition strengthens its AI and cloud manufacturing scale and access to hyperscalers.
SANM's fiscal 2026 and 2027 earnings estimates have risen 25.7% and 23.4%, respectively, since November 2025.
Sanmina Corporation (SANM - Free Report) has plummeted 24.8% over the past six months compared with the industry’s decline of 30.3%. It has outperformed peers like Celestica Inc. (CLS - Free Report) but lagged Jabil, Inc. (JBL - Free Report) . While Jabil has lost 18.6%, Celestica is down 37.7% over this period.
Despite the blip, Sanmina remains an attractive investment option, supported by its growing exposure to artificial intelligence (AI) infrastructure, improving profitability and robust long-term growth prospects. Let us delve a little deeper into the tailwinds of the company.
Six-Month SANM Stock Price Performance
Image Source: Zacks Investment Research
ZT Systems Buyout Augments SANM Scale
In October 2025, Sanmina completed the acquisition of ZT Systems' data center infrastructure manufacturing business from Advanced Micro Devices, Inc. (AMD - Free Report) . ZT Systems is a major supplier of high-performance cloud and AI infrastructure for hyperscale customers, including rack-scale computing platforms. The buyout added massive scale to Sanmina’s AI and cloud manufacturing capabilities, offering a more comprehensive and integrated solution for the fast-growing Cloud and AI end-market.
The transaction enabled Sanmina to gain stronger access to hyperscale cloud providers, who are investing billions in AI infrastructure. AMD also selected Sanmina as a manufacturing partner for its AI rack-scale solutions, enabling faster deployment of cloud AI infrastructure. The collaboration combined AMD’s AI chip-design capabilities with Sanmina’s manufacturing and systems integration expertise to accelerate the deployment of AI systems infrastructure.
Vertical Integration Aids Profitability
Sanmina follows a vertically integrated manufacturing process, offering end-to-end solutions that include product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. This, in turn, streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
Vertical integration significantly accelerates time-to-market and time-to-volume production. In-house management of all components, from the initial phase through the final product, ensures operational flexibility and responsiveness. This enables the company to quickly reallocate its investments and adjust its production processes in response to evolving market dynamics. Vertical integration allows Sanmina to easily develop customized solutions that cater to varied customer specifications operating in multiple sectors.
Customer-Focused Approach Lends Stability
Sanmina is increasingly focusing on 42Q connected manufacturing that effectively integrates data from customers’ global factories and suppliers’ fleets and creates an updated 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.
The unified data ecosystem consolidates product and operational supply data into a single manufacturing data lake, enabling faster planning and improved responsiveness to market and product changes. Real-time data analytics helps optimize shop floor inventory, reduce downtime and improve order flow. The 42Q connected manufacturing also offers enhanced quality monitoring for faster response to quality deviations, leading to reduced waste and better product reliability.
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. Such focused initiatives have helped the company to record a sharp rise in revenues.
Image Source: Zacks Investment Research
Estimate Revision Trend
Earnings estimates for Sanmina for fiscal 2026 and fiscal 2027 have moved up 25.7% to $12.12 and 23.4% to $14.14, respectively, since November 2025. The positive estimate revision depicts bullish sentiment about the stock’s growth potential.
Image Source: Zacks Investment Research
End Note
With a strong presence across multiple end markets, Sanmina is poised for long-term growth. In addition, strengthening technology leadership combined with a customer-focused approach is a key growth driver. Sanmina prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. With upward earnings estimate revisions, the stock is witnessing positive investor sentiment.
Riding on a history of robust earnings surprises and a favorable Zacks Rank, it appears primed for price appreciation in the future. Consequently, investors are likely to profit in the long term if they bet on this stock now.
View the Zacks #1 Rank List
Image: Bigstock
SANM Declines 25% in the Past Six Months: Should You Buy the Stock?
Key Takeaways
Sanmina Corporation (SANM - Free Report) has plummeted 24.8% over the past six months compared with the industry’s decline of 30.3%. It has outperformed peers like Celestica Inc. (CLS - Free Report) but lagged Jabil, Inc. (JBL - Free Report) . While Jabil has lost 18.6%, Celestica is down 37.7% over this period.
Despite the blip, Sanmina remains an attractive investment option, supported by its growing exposure to artificial intelligence (AI) infrastructure, improving profitability and robust long-term growth prospects. Let us delve a little deeper into the tailwinds of the company.
Six-Month SANM Stock Price Performance
Image Source: Zacks Investment Research
ZT Systems Buyout Augments SANM Scale
In October 2025, Sanmina completed the acquisition of ZT Systems' data center infrastructure manufacturing business from Advanced Micro Devices, Inc. (AMD - Free Report) . ZT Systems is a major supplier of high-performance cloud and AI infrastructure for hyperscale customers, including rack-scale computing platforms. The buyout added massive scale to Sanmina’s AI and cloud manufacturing capabilities, offering a more comprehensive and integrated solution for the fast-growing Cloud and AI end-market.
The transaction enabled Sanmina to gain stronger access to hyperscale cloud providers, who are investing billions in AI infrastructure. AMD also selected Sanmina as a manufacturing partner for its AI rack-scale solutions, enabling faster deployment of cloud AI infrastructure. The collaboration combined AMD’s AI chip-design capabilities with Sanmina’s manufacturing and systems integration expertise to accelerate the deployment of AI systems infrastructure.
Vertical Integration Aids Profitability
Sanmina follows a vertically integrated manufacturing process, offering end-to-end solutions that include product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. This, in turn, streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
Vertical integration significantly accelerates time-to-market and time-to-volume production. In-house management of all components, from the initial phase through the final product, ensures operational flexibility and responsiveness. This enables the company to quickly reallocate its investments and adjust its production processes in response to evolving market dynamics. Vertical integration allows Sanmina to easily develop customized solutions that cater to varied customer specifications operating in multiple sectors.
Customer-Focused Approach Lends Stability
Sanmina is increasingly focusing on 42Q connected manufacturing that effectively integrates data from customers’ global factories and suppliers’ fleets and creates an updated 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.
The unified data ecosystem consolidates product and operational supply data into a single manufacturing data lake, enabling faster planning and improved responsiveness to market and product changes. Real-time data analytics helps optimize shop floor inventory, reduce downtime and improve order flow. The 42Q connected manufacturing also offers enhanced quality monitoring for faster response to quality deviations, leading to reduced waste and better product reliability.
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. Such focused initiatives have helped the company to record a sharp rise in revenues.
Image Source: Zacks Investment Research
Estimate Revision Trend
Earnings estimates for Sanmina for fiscal 2026 and fiscal 2027 have moved up 25.7% to $12.12 and 23.4% to $14.14, respectively, since November 2025. The positive estimate revision depicts bullish sentiment about the stock’s growth potential.
Image Source: Zacks Investment Research
End Note
With a strong presence across multiple end markets, Sanmina is poised for long-term growth. In addition, strengthening technology leadership combined with a customer-focused approach is a key growth driver. Sanmina prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. With upward earnings estimate revisions, the stock is witnessing positive investor sentiment.
The firm delivered a trailing four-quarter average earnings surprise of 16.7%. It has a long-term earnings growth expectation of 27.4% and a VGM Score of A. Sanmina currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Riding on a history of robust earnings surprises and a favorable Zacks Rank, it appears primed for price appreciation in the future. Consequently, investors are likely to profit in the long term if they bet on this stock now.