Is Flex Ltd. (FLEX) a Breakout Stock After BofA Raises Target on Business Separation Strategy?

We recently compiled a list of the 12 Best Strong Buy Tech Stocks to Invest In Now. Flex Ltd. (NASDAQ:FLEX) is one of the best Strong Buy stocks on this list.

TheFly reported on May 13 that BofA raised its price target on Flex to $180 from $75 while maintaining a Buy rating on the shares. The firm updated its outlook after management announced plans to separate the Cloud & Power infrastructure business into an independent company. BofA said the higher valuation reflects expectations for a split between FLEX’s faster-growing power and compute operations and its more stable electronics manufacturing services segment. The firm also projected stronger future earnings growth, forecasting a notable increase in earnings per share by calendar year 2027 compared to 2026 levels.

Is Flex Ltd. (FLEX) a Breakout Stock After BofA Raises Target on Business Separation Strategy?

Moreover, on May 14, JetCool, a subsidiary of Flex Ltd. (NASDAQ:FLEX), introduced new SmartPlate System configurations on May 14, 2026, designed for Dell PowerEdge R770 and R7725 servers. The direct-to-chip liquid cooling technology supports systems powered by AMD EPYC and Intel Xeon 6 processors and is aimed at improving compute density and energy efficiency in enterprise and edge data centers. The company stated that the platform can reduce IT power consumption by an average of 13% while enhancing thermal performance. The sealed system is built for deployment without requiring major facility modifications or water infrastructure upgrades, allowing operators to integrate advanced cooling technology into existing air-cooled environments with minimal disruption.

Flex Ltd. (NASDAQ:FLEX) is a global manufacturing and supply chain company that designs and builds products for industries including automotive, cloud computing, healthcare, and industrial technology.

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.

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