Flex Opens New Facility in Dallas to Support AI-Driven Power Demand

Core Viewpoint - Flex Ltd. is significantly expanding its U.S. manufacturing capacity with a new 400,000-square-foot facility in Dallas, aimed at enhancing its power product manufacturing capabilities, particularly for data-center power infrastructure solutions [1][3]. Group 1: Expansion and Strategic Investments - The new Dallas facility will improve production efficiency and reduce lead times for U.S. customers, addressing the rising demand for robust power infrastructure driven by the adoption of artificial intelligence (AI) [2][3]. - This expansion is part of Flex's broader strategy to grow its U.S. footprint and meet the increasing domestic demand for advanced power solutions [3]. - Flex's acquisition of Crown Technical Systems for $325 million enhances its power portfolio and strengthens its presence in the U.S. data-center and utility-power markets [4]. - The acquisition of JetCool Technologies, a leading liquid cooling provider, further bolsters Flex's offerings for data centers, addressing challenges related to power, heat, and scalability in the AI era [5]. Group 2: Market Performance and Growth Projections - In the fiscal third quarter, Flex's data-center business experienced a 45$25.4 billion and $25.8 billion, and adjusted EPS in the range of$2.57 to $2.65 [8]. Group 3: Stock Performance - Flex currently holds a Zacks Rank 2 (Buy), with shares gaining 32.1% over the past six months, contrasting with a 34.2% decline in the Electronics - Miscellaneous Products industry [9].