Dell Technologies (DELL) has been one of the standout performers in the artificial intelligence (AI) sector, with its stock surging over 235% in 2026. This growth was fueled by strong demand for AI-optimized servers and infrastructure solutions. Dell’s recent fiscal first-quarter results showed a revenue jump of 88% year-over-year to $43.8 billion, driven largely by its Infrastructure Solutions Group (ISG) segment, which saw an impressive 181% increase in sales.

While Dell is already on a strong growth trajectory, there’s another AI infrastructure stock that investors may be overlooking: Jabil (JBL). Like Dell, Jabil is benefiting from the surge in demand for AI data centers and related technologies. However, unlike Dell, it’s still trading at a significant discount, offering potential for substantial upside.

The AI Infrastructure Boom and Its Impact on Jabil

Artificial intelligence is reshaping industries across the board, from cloud computing to semiconductor manufacturing. As organizations invest heavily in AI-driven infrastructure, companies that provide essential components such as server racks, power management solutions, and cooling systems are seeing strong growth. Jabil, a contract electronics manufacturer with operations spanning multiple sectors, has positioned itself well to benefit from this shift.

Jabil’s core businesses include data center infrastructure, semiconductor capital equipment, cloud computing, and networking. These areas have all seen increased demand due to the expansion of AI applications. For instance, Jabil provides critical components for AI servers, including liquid-cooling systems and power management solutions, which are essential in maintaining efficient and scalable AI operations.

Jabil’s Strong Financial Performance and Growth Prospects

Jabil’s recent financial results highlight its strong performance and growing relevance in the AI space. In its fiscal 2026 third-quarter report, released on June 17, the company reported a revenue increase of 12% year-over-year to $8.8 billion. Non-GAAP earnings per share rose by 24% to $3.16, reflecting improved operational efficiency and stronger demand for its products.

The company has also raised its full-year revenue forecast, now expecting fiscal 2026 revenue of $35 billion—a 17.4% increase from the previous year. Non-GAAP earnings per share guidance was set at $12.70, a 30% jump compared to fiscal 2025 levels. These figures underscore Jabil’s ability to capitalize on AI-driven growth and its potential for continued expansion.

AI is expected to account for 39% of Jabil’s total revenue in fiscal 2026, up from 30% in the previous year. This shift highlights how quickly AI-related business is becoming a key driver of growth for the company. With the global AI server market projected to grow at an annual rate of 34% through 2030 and semiconductor manufacturing equipment expected to expand by 11% through 2034, Jabil is well-positioned to benefit from these trends.

Jabil’s Strategic Position in the AI Ecosystem

Jabil’s strategic advantages extend beyond its financial performance. The company has been actively expanding its customer base, particularly in the hyperscaler segment—large cloud service providers that are heavily investing in AI infrastructure. In the previous quarter, Jabil added a third hyperscaler client to its portfolio, signaling growing trust and long-term collaboration.

Moreover, Jabil is not just selling products; it’s also helping customers design and manufacture complex systems tailored for AI applications. This includes optical networking equipment, which is emerging as a critical component in AI infrastructure due to the increasing demand for high-speed data transmission.

The company’s ability to innovate and adapt to market needs has been a key factor in its success. As more industries adopt AI technologies, Jabil’s diverse product offerings and global reach will likely continue to drive growth.

The Stock’s Valuation and Growth Potential

Despite its strong performance and promising outlook, Jabil is still trading at a price-to-sales ratio of 1.2, significantly below the Nasdaq Composite’s average of 5.3. This valuation suggests that the market hasn’t fully recognized the company’s potential to capitalize on AI-driven growth.

If Jabil were to trade at a more conservative 3x sales multiple in fiscal 2028, its market cap could reach $143 billion—more than three times its current value. Even if it grows in line with Wall Street’s expectations, the stock has significant room for appreciation.

Conclusion

Jabil is emerging as a compelling investment opportunity in the AI infrastructure space, much like Dell Technologies did earlier this year. With strong financial performance, strategic expansion into key markets, and a growing share of revenue from AI-related products, Jabil is well-positioned to benefit from the ongoing AI boom.

Investors who missed out on Dell’s recent rally may want to consider Jabil as an alternative with similar growth potential but at a more attractive valuation. As demand for AI infrastructure continues to rise, companies like Jabil are likely to see their stock prices soar.

For those looking to capitalize on the next wave of AI-driven innovation, Jabil is worth watching closely. With its strong fundamentals and strategic positioning, it could be the next multibagger in this rapidly evolving market.

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