Flex Teams Up With AMD To Supercharge US AI Infrastructure Buildout
Flex Ltd. (NASDAQ:FLEX) stock rose on Monday following a recent announcement regarding a collaboration with Advanced Micro Devices Inc. (NASDAQ:AMD) to enhance U.S. manufacturing capabilities.
AMD Boosts Domestic AI Capacity
Flex has initiated U.S.-based manufacturing for AMD’s Instinct MI355X GPU platforms, with production already underway at its Austin, Texas headquarters, with a volume ramp expected next quarter.
This collaboration aims to support not only the current generation of AMD Instinct products but also future AMD Instinct platforms, addressing the growing demand for large-scale AI deployments in data centers.
The partnership includes assembling eight AMD Instinct GPUs and essential components into a high-density system design, which will undergo rigorous testing and validation.
For Flex, the deal reinforces its role as a U.S.-based manufacturer for advanced AI infrastructure and could support incremental volume as hyperscalers and enterprises expand deployments.
For AMD, the expansion adds domestic capacity and supply-chain diversity for its accelerator roadmap, a key competitive lever as rivals like Nvidia Corp. (NASDAQ:NVDA) and Intel Corp. (NASDAQ:INTC) push their own AI platforms.
Technical Analysis
Currently, the stock is trading 4.5% below its 20-day simple moving average (SMA) and 8.2% below its 100-day SMA, suggesting a bearish trend in the short- to medium-term. Over the past 12 months, shares have increased by approximately 25%, and they are currently positioned closer to their 52-week highs than lows.
The RSI is at 50.00, indicating neutral territory, while the MACD is at 0.10, below its signal line at 0.15, suggesting bearish pressure on the stock. The combination of neutral RSI and bearish MACD indicates mixed momentum.
- Key Resistance: $65.00
- Key Support: $60.00
Upcoming Earnings
Looking further out, the next major catalyst for the stock arrives with the May 6, 2026, earnings report.
- EPS Estimate: 83 cents (Up from 73 cents YoY)
- Revenue Estimate: $6.93 billion (Up from $6.40 billion YoY)
- Valuation: P/E of 28.3x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $44.63. Recent analyst moves include:
- Barclays: Overweight (Raises Target to $72.00) (Feb. 5)
- Barclays: Overweight (Lowers Target to $71.00) (Jan. 14)
- Goldman Sachs: Buy (Raises Target to $74.00) (Dec. 9, 2025)
FLEX Price Action: Flex shares were up 1.59% at $64.02 at the time of publication on Monday.
Photo by Sundry Photography via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPCross-Asset Positioning Amid AI Earnings Scrutiny and the US Election
1. Markets diverged during the week. Between the October 23 and October 30 closes, BTC fell 4.78%, the Nasdaq 100 declined 1.98%, and gold and silver dropped 2.72% and 8.59%, respectively. The DAX, KOSPI, Nikkei 225 and Hang Seng advanced. We focus on differences in growth prospects, valuation sensitivity and risk exposures rather than applying a single directional view across assets. 2. Market reactions to Alphabet's and Intel's earnings brought returns on AI investment into focus. Attention is shifting from the scale of capital expenditure to revenue realization, margins and free cash flow. Lower interest rates can ease discount-rate pressure, but a sustained valuation recovery still requires support from both operating performance and financing conditions. 3. The November 3 US midterm elections and November 6 employment report are key events in the coming week. We monitor how post-election fiscal and legislative agendas may affect interest rates, the dollar and industry operating conditions. Our execution priorities are to manage leverage and concentration, retain margin and exit-liquidity buffers, and avoid treating a single political outcome as an automatic trading signal. 4. Following Binance's disclosure of a security incident, industry attention to endpoint protection, access segregation and coordinated incident response has increased. Key assets to monitor: BTC, the Nasdaq 100, crude oil and gold, alongside upcoming earnings from AAPL, AMD, PLTR, ARM, ANET and QCOM.
HYATT HOTELS CORP <H.N>: JEFFERIES RAISES TARGET PRICE TO $188 FROM $167
Italgas Raised to Buy From Hold by Berenberg
BANCORP INC <TBBK.O>: KBW CUTS TARGET PRICE TO $56 FROM $65
Crypto prices
More
