What Happened?
Shares of global manufacturing solutions provider Flex (NASDAQ: FLEX) jumped 7.8% in the afternoon session after the company announced an expanded manufacturing partnership with Cerebras Systems to scale production of advanced AI supercomputers in the United States.
The collaboration will significantly boost the production of the Cerebras CS-3, one of the world's most advanced AI accelerator systems, at Flex's facilities in Milpitas, California. Driven by accelerating demand for AI infrastructure, the expanded operation is expected to increase production capacity by approximately seven times through 2026. This scaling will be supported by new production lines, more floor space, advanced test infrastructure, and additional skilled manufacturing talent.
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What Is The Market Telling Us
Flex’s shares are extremely volatile and have had 30 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 biggest move we wrote about over the last year was 2 months ago when the stock gained 30.5% on the news that the company reported fourth-quarter 2025 results that surpassed Wall Street's expectations and raised its full-year profit forecast.
For the quarter, Flex posted revenue of $7.06 billion, a 7.7% year-over-year increase that beat analysts' consensus estimate of $6.81 billion. The company's adjusted earnings per share came in at $0.87, which was 10.5% higher than the anticipated $0.79. Looking ahead, Flex raised its full-year adjusted EPS guidance to $3.24 at the midpoint, signaling confidence in its future profitability.
While its revenue forecast for the upcoming quarter was in line with expectations and adjusted EBITDA fell short of estimates, investors focused on the strong quarterly performance and the improved annual earnings outlook, which drove significant optimism for the stock.
Flex is up 123% since the beginning of the year, but at $142.19 per share, it is still trading 12.2% below its 52-week high of $161.94 from June 2026. Investors who bought $1,000 worth of Flex’s shares 5 years ago would now be looking at an investment worth $8,172.
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