We recently published a list of 10 Stocks That Could Skyrocket After Jensen Huang’s Earnings Call. In this article, we are going to take a look at where Flex Ltd. (NASDAQ:FLEX) stands against other stocks that could skyrocket after Jensen Huang’s earnings call.
DeepSeek AI revelations were the biggest concern for investors when the month started. Many had started questioning if investing so much in AI infrastructure was worth it. Since then, the market sentiment has turned positive again and many of the stocks have recovered. We are now closing in on the most anticipated earnings call of the year so far: Jensen Huang telling us on 26th February how his company performed in the previous quarter.
Investing in the supply chain of big companies has proven beneficial over the years. As the stronger and the bigger company grows, it helps the smaller companies which are an important part of the supply chain also grow.
The Santa Clara-based chipmaker’s earnings will affect the whole market, not just its suppliers. Analysts expect an earnings beat on both the EPS and revenue. This is what the KeyBanc analysts had to say about the earnings:
“Despite prior concerns regarding constraints associated with the ramp of GB200 NVL servers, we expect NVDA to report strong F4Q results, which we anticipate will solidly beat, and to guide F1Q conservatively and moderately higher than consensus.”
We decided to take a look at companies that will benefit from the above-mentioned earnings beat. To come up with our list of 10 stocks that could skyrocket after Jensen Huang’s earnings call, we looked at stocks that are major suppliers of the company.
An engineer with a pen and paper designing a switchgear circuit diagram.
Flex Ltd. (NASDAQ:FLEX)
Flex Ltd. (NASDAQ:FLEX) is a manufacturing solutions provider to different brands. The company operates in Flex Reliability Solutions (FRS) and Flex Agility Solutions (FAS) segments. It offers design and engineering, systems integration services, product development, supply chain comprising manufacturing and other services.
The company announced its Q3 2025 results last month registering a solid performance exceeding estimates. The revenue grew 2% YoY while EBIT margins improved by 6.1%. In addition to this, adjusted EPS and free cash flows also showed improvement.
Amidst this strong performance, the company was able to raise its FY2025 EPS guidance from $2.39-$2.51 to $2.57-$2.65. The most bullish aspect of the guidance is the revenue growth in the data center segment. This segment showed an amazing 45% YoY growth in the 3rd quarter and is expected to maintain this growth rate in the ongoing quarter as well.
Flex Ltd. (NASDAQ:FLEX) is continuously returning capital to shareholders in the form of buybacks. It bought back almost 10% of its shares in FY2025 so far and is expected to continue doing so in the future. In FY2025, the company is predicted to generate free cash flows worth more than $800 million. If these cash flows are allocated to share buybacks, it would account for approximately 5% of the outstanding shares.
Overall, FLEX ranks 7th on our list of stocks that could skyrocket after Jensen Huang’s earnings call. While we acknowledge the potential of FLEX as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as FLEX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
