To The Moon

The Electronic Manufacturing Services sector rose an average of ~2.40% at the Feb 2, 2026 ET market close, primarily driven by strong AI-related demand for data center and networking equipment, boosting key players like Jabil (JBL), Flex, and Sanmina amid ongoing hyperscaler investments.

Additional support came from positive manufacturing sentiment (e.g., ISM data showing expansion) and sector rotation into AI infrastructure beneficiaries, with EMS firms benefiting from outsourced production for cloud/AI hardware despite broader market choppiness.

U.S. stocks rose on Monday following sharp swings that shook financial markets overnight, the $S&P 500(.SPX)$ added 0.5% and snapped a three-day losing streak. $Dow Jones(.DJI)$ rose 515 points, or 1.1%, and $NASDAQ(.IXIC)$ gained 0.6%.

The best-performing concepts is Electronic Manufacturing Services. Considering the different perceptions of the stock, this time TigerPicks chose $TTM Technologies Inc(TTMI)$ $Sanmina(SANM)$ $Benchmark Electronics(BHE)$ $Plexus(PLXS)$ $Flex Ltd(FLEX)$ $Jabil Circuit(JBL)$ $IPG Photonics(IPGP)$ $Fabrinet(FN)$ $TE Connectivity(TEL)$ $Celestica(CLS)$ to have a fundamental highlight to help users understand it better.

1. $Sanmina(SANM)$ +6.20%

• 🚀Q1 FY2026 strength lingered positively: revenue +59% YoY to $3.19B, non-GAAP EPS $2.38 (beat estimates), with Cloud/AI now 62% of revenue via ZT Systems integration and hyperscaler deals.

• 🎯Analyst targets remained bullish ($195–$225, implying 30–50% upside from ~$150 levels), highlighting multi-year AI ramp and margin expansion potential (target >7%).

• Sector-wide shortage narrative (e.g., memory pricing surge) boosted EMS leverage in AI hardware supply chains.

• Technical recovery (high $150.57, volume +26.6% above average) drew momentum as fears of a slowdown faded.

• 💡 Strategy: Execute a Bull Call Spread (Buy $150 / Sell $155, Feb 20) to capture a short-term bounce toward resistance.

2. $TTM Technologies Inc(TTMI)$ +4.64%

• 📅Pre-earnings buildup (Q4 report Feb 4) fueled optimism around sustained AI/advanced PCB demand, positioning TTMI as a key enabler in data center growth.

• 📊Consensus expectations for ~15.55% YoY revenue growth (~$752M) and EPS $0.68 reflected confidence in 15–20% long-term annual growth from AI/defense backlogs.

• Recent momentum (e.g., prior beats and capacity expansions like Penang/Syracuse) supported rotation into EMS plays tied to hyperscaler builds.

• Broader AI infrastructure tailwinds (e.g., data center CAGR 25–28%) made TTMI attractive for exposure without extreme valuation extension.

• 💡 Strategy: Sell a Bull Put Spread (Sell $95 / Buy $90, Mar 17) to collect premium while betting on support holding post-earnings.

3. $Benchmark Electronics(BHE)$ +3.34%

• ⏳Anticipation for Q4 earnings (Feb 3) combined with analyst support drove gains, as BHE looked undervalued in the AI/cloud EMS upswing.

• Recent Q3 beat (EPS $0.62 > $0.57 est, revenue +3.5% YoY) set a positive tone, with Q4 expectations for ~6.1% YoY revenue growth to ~$697M and EPS ~$0.64.

• PT hikes (e.g., Lake Street $57, Needham $55, consensus ~$56) and Moderate Buy ratings underscored value in diversified EMS amid AI tailwinds.

• Defensive rotation benefited from sector strength in enterprise hardware and dividend yield (~1.3%).

• 💡 Strategy: Implement a Bull Put Spread (Sell $50 / Buy $45, Mar 17) to generate income while defining risk against a pullback.

4. $Plexus(PLXS)$ +2.82%

• 🚀Improved technical momentum and sector halo from AI outsourcing demand supported the move, with Plexus positioned in complex, high-margin programs. Recent RS rating rise to 91 signaled building strength amid EMS rotation.

• Guidance/upbeat commentary (e.g., potential to exceed 9–12% FY2026 revenue growth) from prior results highlighted wins in healthcare/life sciences/aerospace with AI spillover.

• Attractive valuation drew value hunters in a group where AI-driven gains were extending.

• 💡 Strategy: Deploy a Bull Call Spread (Buy $200 / Sell $210, Mar 20) targeting a moderate move toward the $208 resistance.

5. $Flex Ltd(FLEX)$ +2.60%

• ⚡FY2026 guidance ($26.7–$27.3B revenue, ~9.14% gross margin) emphasized strong Power/Cloud demand and NVIDIA partnerships (e.g., 800V DC AI factories).

• Data center revenue growth 35%+ expected amid AI infrastructure build-out, strong cash flow (~$998M TTM levered FCF) added resilience appeal.

• Persistent AI data center focus (top growth engine) and integrated solutions positioning drove conviction in Flex's higher-margin shift.

• 💡 Strategy: Utilize a Bull Call Spread (Buy $65 / Sell $70, Mar 20) to position for a post-earnings move toward the $66–$68 range.

6. $Jabil Circuit(JBL)$ +2.54%

• 💧 AI revenue momentum and full-stack capabilities in data center hardware supported steady gains in the group rally.

• FY2026 AI-related target ~$12.1B (+35% YoY), with exposure to liquid cooling/silicon photonics.

• Diversified portfolio (cloud, automotive, automation) benefited from AI spillover.

• 💡 Strategy: Execute a Bull Call Spread (Buy $245 / Sell $260, Mar 19) to target a test of the 52-week high at $258.

7. $IPG Photonics(IPGP)$ +2.32%

• 🔦 Laser Focus: AI/hardware rally spillover lifts exposure for advanced manufacturing in data centers.

• 📊 Volume Spike: High volume (+72% above prior) indicates renewed interest in component suppliers.

• 💡 Strategy: Sell a Bull Put Spread (Sell $90 / Buy $85, Mar 20) to profit from consolidation above key support levels.

8. $Fabrinet(FN)$ +2.08%

• 🏆Record Q2 results (reported Feb 2: revenue +36% YoY to $1.13B, non-GAAP EPS $3.36 high) and diversification beyond optical fueled post-earnings strength.

• Optical/Telecom surge (Telecom $554M +59% YoY) tied to AI networking (e.g., 800G/400G).

• Momentum from HPC/AI trends, and sector halo from data center demand.

• 💡 Strategy: Enter a Bull Call Spread (Buy $500 / Sell $530, Mar 19) to capture short-term momentum toward the $530 zone.

9. $TE Connectivity(TEL)$ +1.95%

• 🔗AI-related connector demand (high-speed interconnects for servers/networking) provided an indirect lift in the infrastructure build.

• Recent upbeat Q2 guidance (~$2.65 EPS > est) on AI tools/products boosted sentiment.

• 💡 Strategy: Construct a Bull Call Spread (Buy $225 / Sell $240, Apr 17) to play an oversold rebound targeting $231–$240.

10. $Celestica(CLS)$ +1.47%

• 🚀Strong AI/hyperscaler momentum from recent Q4 beat and raised 2026 outlook supported modest gains amid group strength.

• FY2026 guidance ~$17B revenue/$8.75 EPS (+37% revenue growth implied) driven by data center/networking.

• 💡 Strategy: Execute a Bull Put Spread (Sell $280 / Buy $275, Feb 19) to capitalize on a short-term oversold bounce above support.

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