Flex (FLEX) Announces $1.1B Acquisition to Boost Power Infrastructure Capabilities

Flex Ltd. (NASDAQ:FLEX) is among the 13 Best Strong Buy AI Stocks to Invest In Now.

On March 30, Flex Ltd. (NASDAQ:FLEX) announced a definitive agreement to acquire Electrical Power Products for approximately $1.1 billion in cash, a transaction expected to be accretive to adjusted EPS within the first full fiscal year post-close. The acquisition enhances Flex’s exposure to power infrastructure markets, adding a business with anticipated revenue of approximately $323 million and a mid-to-high teens EBITDA margin profile, while also strengthening its capabilities in engineered power control systems critical for utilities, industrials, and data centers.

Previously, on March 12, Baird initiated coverage of Flex Ltd. (NASDAQ:FLEX) with an Outperform rating and a $70 price target, highlighting the company’s improving growth and margin profile. The firm pointed to Flex’s power segment as particularly attractive, given its role in supporting increasing energy demands driven by AI infrastructure, and sees a clear pathway for further margin expansion as the business mix shifts toward higher-value segments.

Flex Ltd. (NASDAQ:FLEX) is a diversified manufacturing partner with a growing focus on AI infrastructure, cloud computing, and power solutions. With strategic acquisitions enhancing its capabilities, strong positioning as an enabler of AI-driven energy demand, and improving financial performance, the company offers meaningful upside potential as it continues to benefit from structural growth in data center and power infrastructure markets.

While we acknowledge the potential of FLEX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

[/im-yf-promo]

While we acknowledge the risk and potential of FLEX as an 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 more promising than FLEX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Lithium Stocks List: 9 Biggest Lithium Stocks and 10 Most Undervalued Tech Stocks to Buy According to Analysts.

Disclosure: None.  Follow Insider Monkey on Google News.