16 Best Mid Cap Growth Stocks To Buy Now

9. Flex Ltd. (NASDAQ:FLEX)

Market Capitalization as of September 13: $11.83 billion

Number of Hedge Fund Holders: 46

Flex Ltd. (NASDAQ:FLEX) is the third-largest global electronics manufacturing services, and second-largest original design manufacturer company by revenue. Services include design, engineering, manufacturing, and supply chain management. It partners with companies across various industries to help them bring their products to market efficiently and cost-effectively.

It extends to Asia, the Americas, and Europe. The company is focusing on the AI sector, with an 80% coverage of the data center requirements for large and hyper-scale customers. It stands out as one of the few AI industrial stocks with global reach and exposure to automotive sectors.

A competitive advantage for the company is its offering of power pods for data centers, which feature lower build costs and shorter lead times. During its FQ1 2025, management highlighted significant advancements in various large programs across its cloud, power, and automotive sectors.

These initiatives resulted in a strong fiscal first quarter, with the company reporting $6.31 billion in revenue, up 2% sequentially, although there was a 13.93% decline year-over-year. Data center and power revenues account for over 25% of the company’s total revenue. The sequential improvement also happened due to a reduction in net inventory by 6% sequentially and 21% year-over-year.

The ongoing AI transition in data centers is driving demand for its cloud and power solutions, positioning the company well for continued growth. As the company remains confident in achieving its full-year guidance and is well-prepared to capitalize on long-term opportunities in the automotive and healthcare sectors, this automatically becomes one of our top mid-cap stocks to buy now.

Artisan Small Cap Fund stated the following regarding Flex Ltd. (NASDAQ:FLEX) in its first quarter 2024 investor letter:

“We initiated new GardenSM positions in Flex Ltd. (NASDAQ:FLEX), On Holding and Onto Innovation during the quarter. Flex provides outsourced electronic manufacturing services to a diverse set of end markets. The company hired a new CEO in 2020, who has been driving a strategic pivot toward manufacturing high-value products in areas such as health care, industrial, automotive and cloud infrastructure. Today, these higher value items account for ~60% of revenues, and we believe they will continue to tick higher. We also believe an improving business mix, along with the reshoring of supply chains, will lead to faster growth and higher margins.”