I was one of the biggest shareholders in this tech stock in the 1990s. I'm bullish again because of AI
Flex plans to spin off Axiom, its AI infrastructure business, in 2027. Paul Meeks sees upside as data center power demand grows.
TL;DR
- Flex plans to separate its Cloud and Power Infrastructure business, Axiom, into an independent public company by the first quarter of 2027.
- Axiom provides essential power and cooling equipment for AI data centers, a sector experiencing high demand.
- The spin-off is expected to unlock significant value for investors, with Axiom projected to achieve substantial revenue growth and increased operating margins.
- Revathi Advaithi, current Flex CEO, is slated to lead Axiom, bringing valuable experience from her previous roles at Eaton and Honeywell.
- The author believes Flex shares are currently undervalued, presenting an attractive opportunity ahead of upcoming company events.