By Dr. James Fox
Publication Date: 2026-02-18 07:15:00
Image source: Getty Images
Nvidia‘s the most successful US stock on the S&P 500 over the past decade. Now, I don’t believe the stock I’m about to talk about will be the next Nvidia. It isn’t the kingpin of the artificial intelligence (AI) revolution. But it could experience some Nvidia-like share price growth over the next couple of years.
So why’s that? Well, two reasons. Firstly, it’s cheap, and second, it’s operating in a sector that’s both surging and appears to offer long-term resilience.
The company’s Sanmina Corporation (NASDAQ:SANM). It provides end-to-end manufacturing services for complex electronics and precision components across industries including communications, industrial, defence, automotive, and medical technology.
The company has also positioned itself strategically within AI infrastructure, recently acquiring the ZT Systems data centre manufacturing business from AMD for up to $3bn, significantly enhancing its scale and presence in the fast-growing cloud and AI markets.
It’s now an $8bn company, with a modest net debt position around $1bn.
Why am I so interested?
The first part of my interest is the valuation (pretty much always my starting point). The company trades at 14.5 times forward earnings. This stands out because the sector average is actually around 23.5 times. With that in mind, we can already observe a 38% discount.
But none of this would matter if the company wasn’t growing…
