8 Best Electronic Stocks To Buy According to Hedge Funds

4. Flex Ltd. (NASDAQ:FLEX)

Market Cap as of October 22: $13.65 billion

Number of Hedge Fund Holders: 46

Flex Ltd. (NASDAQ:FLEX) is an American multinational manufacturing company and one of the largest global electronics manufacturing services providers by revenue. It offers a comprehensive range of services, including product development, engineering, manufacturing, and logistics. The company serves a diverse customer base across various industries, including healthcare, consumer electronics, automotive, and industrial applications.

The company’s competitive edge lies in its power pods for data centers, offering lower costs and faster delivery times. In FQ1 2025, significant progress was made in cloud, power, and automotive projects. Revenue increased 2% sequentially despite a 13.93% year-over-year decline in this quarter. Datacenter and power revenues contribute over 25% to the total revenue. Inventory reduction of 6% sequentially and 21% year-over-year also contributed to the sequential improvement.

Its innovative power solutions are driving growth and positioning it for success in the AI-dominated tech landscape. Despite EV adoption concerns, it’s poised to outperform the automotive market due to its advanced compute solutions and power products. In digital health, Flex Ltd. (NASDAQ:FLEX) anticipates a balanced supply-demand situation, with strong medical device demand offsetting a softer medical equipment market.

As a key player in the AI sector, serving 80% of large and hyper-scale data centers, the company stands out with its global reach and automotive exposure. Its power pods for data centers offer a competitive edge with lower costs and faster delivery times. In FQ1 2025, significant advancements were made in various projects across cloud, power, and automotive. The ongoing AI transition in data centers is driving demand for its cloud and power solutions, positioning Flex Ltd. (NASDAQ:FLEX) well for continued growth.

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.”