UBS sees Jabil’s AI revenue jumping 50% by fiscal 2027 as spending from Amazon, Meta and Google fuels demand for its data-center infrastructure.

  • UBS raised Jabil to ‘Buy’ while maintaining its $430 price target, implying nearly 28% upside from Monday’s close.
  • AI-related revenue is projected to climb 50% to $20.3 billion in fiscal 2027, from $13.5 billion in fiscal 2026.
  • Amazon is Jabil’s largest AI partner, while product road maps from Meta and Google could also drive faster growth than previously expected, according to UBS.

Shares of Jabil Inc. (JBL) jumped nearly 6% on Tuesday after UBS upgraded the stock to ‘Buy’ from ‘Neutral,’ as the firm sees Big Tech’s AI investments providing a boost to the company in the coming years.

By midday Tuesday, JBL stock had pared some of its gains but was still trading 4.3% higher.

UBS Sees AI-Driven Growth Ahead For JBL

UBS analyst David Vogt upgraded Jabil to ‘Buy’ while keeping the price target unchanged at $430, implying nearly 28% upside from Monday’s close.

The firm said “product road maps” from key customers, including Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Alphabet Inc. (GOOGL), could mean potentially faster growth than previously expected.

“We upgrade Jabil to Buy on a multi-year growth cycle fueled by AI investment from Amazon, Meta, and Google,” the analyst wrote, according to a report in Barron’s. UBS added that rising health care demand and “scaling automation and robotics markets” will also be tailwinds for the company.

The firm forecasts Jabil’s AI-related revenue growing by about 50% to $20.3 billion in fiscal 2027, up from $13.5 billion in fiscal 2026.

Amazon Emerges As Key AI Partner

Amazon is the key for Jabil, according to UBS, the Barron’s report stated. “Amazon, Jabil’s largest AI partner, plans to accelerate deployment of its Graviton CPUs and Trainium AI ASICs over the next several years,” the analyst wrote.

Graviton is Amazon Web Services’ family of custom-designed processors for cloud computing, while Trainium is a family of purpose-built AI chips designed for machine-learning training and inference.

Jabil has become a key “picks and shovels” play in the broader AI sector, a far cry from its roots in assembling and repairing printed circuit boards, the Barron’s report said.

JBL’s Broader Outlook

Jabil in June raised its fiscal-year profit guidance to $12.70 a share from $12.25, while increasing its revenue outlook to roughly $35 billion from $34 billion.

Management cited better-than-expected performance in areas of the portfolio that had previously come under pressure, notably its automotive segment and connected living business, which centers on components found in smart home appliances.

But AI has been the big growth engine for both the stock and the business. UBS, by all accounts, sees that continuing, Barron’s stated.

JBL Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for JBL was ‘neutral’ over the past 24 hours, while message volume was ‘low’ at the time of writing.

JBL stock has gained over 50% this year and has advanced nearly 57% over the past 12 months.

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