Should Flex’s Expanded US AMD Instinct AI Manufacturing Shift the Investment Narrative for Flex (FLEX)?

• In early March 2026, AMD announced it had expanded its collaboration with Flex to manufacture the AMD Instinct MI355X AI platform in the US, with production already underway at Flex’s 1.40 million-square-foot Austin, Texas headquarters and volume ramp expected the following quarter.
• This move underscores Flex’s role in building complete, high-density AI hardware systems, including liquid-cooled, eight-GPU platforms, for large-scale data center deployments, deepening its position in advanced US electronics manufacturing.
• Next, we’ll examine how Flex’s US-based AMD Instinct manufacturing, including integrated liquid-cooling capabilities, could influence the company’s existing investment narrative.

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Flex Investment Narrative Recap

To own Flex, you need to believe it can turn its role in complex AI and power systems into durable, higher value manufacturing and services. The new AMD Instinct MI355X win reinforces Flex’s position in US-based, high density AI hardware, supporting the key near term catalyst of data center growth. It does not remove Flex’s biggest risk, which remains customer concentration among hyperscalers and their potential to bring more power and cooling work in house.

Among recent announcements, the July 2025 Q1 FY2026 results and full year outlook are especially relevant, because they showed Flex leaning into AI driven data center demand while still operating on thin margins. The AMD expansion fits that pattern by adding another complex AI platform to Flex’s book of business, which could help support the company’s revenue guidance if execution and customer demand hold up.

Yet in contrast, investors should be aware that Flex’s reliance on a handful of hyperscale and colo customers means any shift toward aggressive insourcing could...

Read the full narrative on Flex (it's free!)

Flex’s narrative projects $29.1 billion revenue and $1.3 billion earnings by 2028. This requires 3.7% yearly revenue growth and an earnings increase of about $0.4 billion from $891.0 million today.

Uncover how Flex's forecasts yield a $76.12 fair value, a 20% upside to its current price.

Exploring Other Perspectives

FLEX 1-Year Stock Price Chart

Before this AMD news, the most pessimistic analysts were assuming revenue of about US$28.6 billion and earnings of roughly US$1.3 billion by 2028, which sits in sharp contrast to the risk that rising labor costs and supply chain shifts could eat into margins. Their narrative is much more cautious, so it is worth weighing it against this new AI partnership and asking how your own expectations might differ.

Explore 5 other fair value estimates on Flex - why the stock might be worth just $63.83!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Flex research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Flex research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flex's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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