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Sanmina Corp

Sanmina Corp

SANM
$197.24USD↓-0.41%-0.81 today

MARKET CAP

10.6B

P/E (TTM)

22.6x

FWD P/E

16.3x

DAY RANGE

$188 – $203

52W RANGE

$95
$289

AI Summary

Stalk
TrimMedium

SANM is undergoing structural repair after Bearish Pivot Point and Bearish Exhaustion patterns signaled failure of upside control and seller fatigue. The medium-term bias is bearish as price tracks below its 9/20 EMAs and the 50 SMA, disallowing fresh long entries. Short-term timing is neutral amid extreme oversold readings with no clear reversal, advising deferred sell execution into rallies near the EMAs.

  • ↑Q2 revenue of $4.01B rose 102% YoY, driven by ZT acquisition
  • ↑Non-GAAP operating margin expanded to 6.4%, up 80 bps YoY
  • ↓P/E of 53.5x vs 5-year median 13.7x suggests overvaluation
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Sanmina Corporation (NASDAQ: SANM) is a prominent player in the electronics manufacturing services (EMS) industry, specializing in integrated manufacturing solutions, design engineering, and supply chain services. The company operates across diverse sectors, including communications, cloud infrastructure, and medical devices. With the strategic acquisition of ZT Systems, Sanmina is well-positioned to leverage growth opportunities tied to the increasing demand for AI-powered infrastructure, making it a key candidate in the fast-evolving technology landscape.

Bull says

  • ↑Q2 revenue of $4.01B rose 102% YoY, driven by ZT acquisition
  • ↑Non-GAAP operating margin expanded to 6.4%, up 80 bps YoY
  • ↑AI and cloud infrastructure demand fuels strong growth momentum
  • ↑Operating cash flow of $399M funded a $600M share buyback
  • ↑Analysts raised EPS estimates, reflecting upward earnings revisions
  • ↑Strong momentum and earnings yield support continued investor interest

Bear says

  • ↓P/E of 53.5x vs 5-year median 13.7x suggests overvaluation
  • ↓Inventory climbed to $2.1B, heightening supply chain volatility
  • ↓Custom ASIC shortages risk disrupting deliveries and pressuring margins
  • ↓Geopolitical tensions and tariffs introduce demand and cost uncertainty
  • ↓Top 10 clients account for over 50% of revenue, raising concentration risk
  • ↓High share volatility and low institutional ownership signal investor caution

Investment themes with SANM

Datacenter↑ +1.14%

Infrastructure powering data storage and cloud computing

ORCL · EQIX · DLR

Earnings Call · Q2 2026 · Mgmt. Guidance

Updated 04-28-2026neutral

Transcript signals

Bull points

  • Included in our press release and slides issued today, we have provided you with statements of operation for the second quarter ended March 28, 2026, on a GAAP basis, as well as certain non-GAAP financial information.
  • Included in our press release and slides issued today, we have provided you with statements of operation for the second quarter ended March 28, 2026, on a GAAP basis, as well as certain non-GAAP financial information.
  • Included in our press release and slides issued today, we have provided you with statements of operation for the second quarter ended March 28, 2026, on a GAAP basis, as well as certain non-GAAP financial information.

Bear points

  • This was down 10 basis points versus the same period a year ago, driven by mix.
  • CPS non-GAAP gross margin was 11.6%, down 230 basis points versus the same period a year ago. This decrease was primarily driven by depreciation and other expenses related to investments to support new programs, which we expect will deliver margin and creative growth in future quarters.
  • In addition, component shortages impacted the timing of revenue and profitability for one of our product businesses, which we believe will be resolved in the second half of the fiscal year.
Read full transcript analysis ›