Should Flex’s expansion of U.S. AMD Instinct AI manufacturing change the narrative for investing in Flex (FLEX)?

• In early March 2026, AMD announced an expanded partnership with Flex to manufacture the AMD Instinct MI355X AI platform in the United States, with production already underway at Flex’s 1.4 million square foot headquarters in Austin, Texas, with production expected to ramp up in the next quarter.
• This move underscores Flex’s role in building complete high-density AI hardware systems, including liquid-cooled 8-GPU platforms, for large-scale data center deployments and strengthens Flex’s position in advanced electronics manufacturing in the United States.
• We then consider how Flex’s US-based AMD Instinct manufacturing, which includes integrated water cooling capabilities, could impact the company’s existing investment story.

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Flex Investment Story Summary

To own Flex, you need to believe that its role in complex AI and power systems can be transformed into durable, higher-value manufacturing and services. The new AMD Instinct MI355X win strengthens Flex’s position in US-based high-density AI hardware and supports a significant near-term catalyst for data center growth. This does not eliminate Flex’s biggest risks. There remains the potential for customer concentration among hyperscalers and increased in-house power and cooling efforts.

Among the recent announcements, the July 2025 fiscal 2026 first quarter results and full-year outlook are particularly relevant. That’s because Flex has been shown to lean toward AI-driven data center demand, even though it still has low margins. AMD’s expansion fits that pattern by adding another complex AI platform to Flex’s book of business, which could help support the company’s revenue outlook if execution and customer demand hold up.

However, in contrast, investors should be aware that Flex’s reliance on a small number of hyperscale and colony customers means that a shift to aggressive insourcing may occur…

Read the full story on Flex (it’s free!)

The Flex story projects sales of $29.1 billion and profits of $1.3 billion by 2028. This would require annual sales growth of 3.7% and an increase in profits of approximately $400 million from the current $891 million.

We reveal how Flex’s projections yield a fair value of $76.12, 20% above its current price.

explore other perspectives

Before this AMD news, the most pessimistic analysts were predicting sales of about $28.6 billion and profits of about $1.3 billion by 2028. This contrasts with the risk that rising labor costs or changes in the supply chain could squeeze profit margins. Their story is much more measured, so it’s worth asking how your expectations differ compared to this new AI partnership.

Check out 5 other fair value estimates for Flex – why the stock is only worth $63.83!

reach one’s own conclusion

Don’t agree with the existing narrative? Following the herd rarely yields exceptional investment returns. Follow your intuition.

• A good starting point for any Flex research is our analysis that highlights 3 key benefits and 1 key warning sign that could influence your investment decision.
• Our free Flex research report provides comprehensive fundamental analysis compiled into a single visual (snowflake), making it easy to assess Flex’s overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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