Flex Ltd. FLEX announced a significant expansion of its U.S. manufacturing capacity with the launch of a new 400,000-square-foot facility in Dallas, dedicated to power product manufacturing. This new facility strengthens Flex’s efficiency and production capabilities, particularly for its grid-to-chip data-center power infrastructure solutions, including power-distribution units, power pods and low-voltage switchgear.

As the demand for robust power infrastructure surges due to the rapid adoption of artificial intelligence (AI), this strategic investment will allow Flex to better serve its U.S. customers by reducing production lead times and scaling power solutions more efficiently.

The new Dallas facility will also act as a central hub, integrating technical power pod fabrication and assembly with utility-grade capabilities to enhance distribution efficiency across North America. This expansion is part of Flex’s broader strategy to grow its U.S. footprint and underscores dedication to meeting the rising domestic demand for advanced power solutions. By bolstering its manufacturing presence, Flex is well-positioned to support the evolving needs of AI-driven data centers, ensuring reliable and efficient power infrastructure for the future.

Building on its commitment to the data-center market, Flex’s expansion in Dallas follows its acquisition of Crown Technical Systems. On Nov. 20, 2024, Flex finalized the $325 million acquisition of Crown Technical Systems, expanding its power portfolio and increasing presence in the U.S. data-center and utility-power markets. The acquisition enhances Flex's presence in rapidly expanding and profitable markets, particularly in modular data-center adoption and medium-voltage power distribution. This move broadens Flex's power portfolio into the utility power sector, capitalizing on ongoing trends in grid modernization and increased energy generation.

Flex Ltd. Price and Consensus

Flex Ltd. price-consensus-chart | Flex Ltd. Quote

On Nov. 14, 2024, Flex acquired JetCool Technologies, a top liquid cooling provider for data centers. The acquisition strengthens Flex's data center and power offerings, enabling hyperscale and enterprise customers to address increasing challenges with power, heat and scalability in the AI era.

Leveraging expertise in scaling power-pod production in Europe, the Middle East and Africa, Flex is now bringing that knowledge to its U.S. operations, ensuring faster and more seamless power solutions for growing customer base.

In the fiscal third quarter, AI-driven cloud transformation led to 45% year-over-year growth in the data-center business. The company continues to anticipate a long-term multi-year data center CAGR of 20%. Its innovative suite of power products and services enhances customer satisfaction. All these factors are favorably positioning Flex for the AI-powered technology shift, prevalent in the industry, from grid to chip and from the cloud to the edge.

Flex delivered strong fiscal third-quarter results and issued an optimistic outlook for fiscal 2025. The company now expects revenues to be in the range of $25.4-$25.8 billion (previously $24.9-$25.5 billion) and adjusted EPS to be in the range of $2.57-$2.65 (previously $2.39-$2.51).

FLEX’s Zacks Rank & Stock Price Performance

FLEX currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 32.1% in the past six months against the Electronics - Miscellaneous Products industry's decline of 34.2%.

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Other Stocks to Consider in Computer Technology Space

Some other stocks from the broader technology space are KLA Corporation KLAC, Garmin Ltd. GRMN and Salesforce, Inc. CRM. KLAC, GRMN and CRM each presently holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for KLA Corporation’s fiscal 2025 earnings per share is pegged at $31.59, unchanged in the past seven days. KLAC’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.35%. The company’s long-term earnings growth rate is 15.6%. Its shares have increased 13.8% in the past year.

The Zacks Consensus Estimate for Garmin’s 2025 earnings per share is pegged at $7.76. GRMN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 28.85%. The company’s long-term earnings growth rate is 21.6%. Its shares have rallied 28.9% in the past three months.

The Zacks Consensus Estimate for Salesforce’s fiscal 2025 earnings per share is pegged at $10.02, unchanged in the past 60 days. CRM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with the average surprise being 2.99%. The company’s long-term earnings growth rate is 14.7%. Its shares have gained 23.2% in the past six months.

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