Jabil Stock Soars on UBS Upgrade: AI Growth Driven by Big Tech Investments

Jabil's stock surged nearly 6% on Tuesday after UBS upgraded its rating to 'Buy' from 'Neutral', citing potential growth fueled by AI investments from Amazon, Meta, and Google. The firm sees Jabil's AI-related revenue increasing by about 50% to $20.3 billion in fiscal 2027.

UBS analyst David Vogt raised the company's price target to $430, implying nearly 28% upside from Monday's close. Amazon is identified as Jabil's largest AI partner, with plans to accelerate deployment of its Graviton CPUs and Trainium AI ASICs over several years.

Jabil has become a key player in the AI sector, according to UBS, driven by demand for data-center infrastructure from Big Tech companies. The firm's forecast suggests that Jabil's AI growth will be fueled by not only Amazon but also Meta and Google's product roadmaps.