What Happened?
Shares of electronics manufacturing services provider Jabil (NYSE: JBL) jumped 3.2% in the afternoon session after the company announced the launch of its new J-422G servers designed to meet the growing demands of artificial intelligence (AI) and data center customers.
These new high-performance servers were built to handle heavy workloads for AI, machine learning, and large language models. The systems featured sixth-generation Intel Xeon processors and supported up to four powerful GPUs, which are key components for AI processing. The product launch followed Jabil's recent announcement of a $500 million investment in a new North Carolina facility to support its cloud and AI data center infrastructure customers. The new servers were expected to become generally available in November 2025.
After the initial pop the shares cooled down to $200.40, up 3.3% from previous close.
Is now the time to buy Jabil? Access our full analysis report here.
What Is The Market Telling Us
Jabil’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.7% on the news that President Trump threatened a 'massive increase in tariffs' on Chinese imports, reigniting fears of a renewed US-China trade war.
The unexpected comments, made in response to Beijing's plans to tighten export controls on rare-earth minerals, reversed early market gains and sent major indices tumbling. Rare-earth minerals are crucial for components used in the electronics and automotive industries. The tech sector led the losses, with the tech-rich Nasdaq Composite falling 1.7%. The threat jolted Wall Street, sparking concerns that escalating trade tensions could disrupt global supply chains and increase costs for many technology companies that rely on components or manufacturing from China.
Jabil is up 40.3% since the beginning of the year, but at $200.40 per share, it is still trading 14.5% below its 52-week high of $234.45 from September 2025. Investors who bought $1,000 worth of Jabil’s shares 5 years ago would now be looking at an investment worth $5,632.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
