Flex: The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business

The company solving the supply chains challenges of the world's most important brands is becoming a better business (mix shift), but also a secret AI infra play and reshoring winner

Welcome to the 6th investment case and 3rd reshoring and 2nd AI & data center idea on Crack the Market (and the most comprehensive Flex investment case you will find online)! Join me as I dissect this critical manufacturing partner for some of the most important and well-known companies in the world (including Nvidia and hyperscalers), enabling the production of more complex and technological products, the rapid deployment of AI data centers (thanks to some unique advantages), as well as the regionalization of supply chains.

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 6 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience & reshoring idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

After reading this article, you will understand why this company is so special but why you had never heard of it before, what it does, why it is a big beneficiary of the AI infrastructure buildout, why the quality of the business is steadily improving (margin and resilience), and why it is one of the best businesses to own in the age of AI, deglobalization and penetration of technology within products everywhere.

This company is a play on more complex and regionalized supply chains, more complex and technological products, outsourcing in many industries that are still underpenetrated (auto, healthcare), cloud/Al growth (only EMS company with own comprehensive cloud power products from embedded to critical facilities with portfolio that is truly grid to chip) and margin expansion.

In this article I go through:

1. Flex’s business and its critical role within its customer’s value chains, providing flexibility and resilience.

2. Why Flex is becoming more profitable and resilient thanks to technological transitions within important sectors.

3. Why many investors are still missing that this company is a huge play on AI infrastructure spending.

4. Why this company is becoming vastly more important in a more complex and technological world.

5. Flex’s improving fundamentals and business quality, coupled with its strong cash generation, enabling excellent return to shareholders.

Flex Investment Case