We recently compiled a list of the 11 Best 3D Printing and Additive Manufacturing Stocks To Buy. In this article, we are going to take a look at where Jabil Inc. (NYSE:JBL) stands against other best 3D printing and additive manufacturing stocks to buy.
3D printing is a process where a machine, known as a 3D printer, creates a product or part by layering material over a substrate, following a digital design. The benefits of 3D printing are numerous and significant. One of the primary advantages is cost reduction, which is achieved by minimizing waste, lowering labor costs, and enabling the use of less expensive materials.
The 3D printing technology has revolutionized the manufacturing industry by enabling companies to produce complex geometries, reduce production time, and lower costs. The applications of 3D printing in manufacturing are diverse and include product enhancements, low-volume production, and high-volume production. For instance, 3D printing allows for rapid prototyping and production of enhanced products, reducing the time and cost associated with traditional manufacturing methods. Additionally, 3D printing is ideal for producing small batches of parts, enabling companies to test market demand and refine their designs before investing in large-scale production.
3D printing is also revolutionizing the construction industry by enabling the rapid creation of customized structures, such as modular housing, advanced utility systems, and adaptable public spaces. This technology allows for the design and construction of complex geometries and unique architectural designs without significantly increasing costs. The use of 3D printing in construction is also driven by the need for sustainable and eco-friendly building solutions. 3D printing can incorporate recycled and biodegradable materials, such as recycled plastics, glass, and natural materials such as hemp or bio-based polymers, to produce strong and eco-friendly building materials.
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According to the 3D Printing Trend Report 2024 by Protolabs, the 3D printing industry was valued at $22.14 billion in 2023 and is expected to grow to $57.1 billion by the end of 2028. The industry’s move towards production applications, including low-volume production, mass customization, and serial production, is a key factor in this growth. A network of companies providing production support and specialized solutions for a wide range of fields and applications has emerged, signifying a maturation of the wider 3D printing ecosystem. Automation systems supported by computer vision, thermal sensors, and AI can effect significant labor savings, and thus cost efficiency, further encouraging the uptake of production-level 3D printing.
The report highlights that investments in micro 3D printing continue to be significant, with the technology’s ability to achieve highly complex geometries at a microscopic scale being leveraged by a range of industries, particularly by the medical and dental sectors. However, new developments in large-format printing promise to have an impact on sectors such as construction. Large-format 3D printing is being used to print houses, bridges, and other large structures, with some companies already making significant strides in this area.
Other trends and developments expected to have an impact on the 3D printing industry in the coming year include the continued rise of metal printing (DMLS), used predominantly for aerospace, automotive, and medical applications as well as for tooling; hybrid manufacturing processes combining additive manufacturing with CNC machining and other technologies; and multi-material printing, enabling the combination of materials with different properties in one printed object.
The report also notes the increasing importance of AI in the 3D printing industry. AI is expected to have a wider impact on hardware, for instance in quality control with in-process monitoring and anomaly detection. Smart printers will get smarter, improving user experience. Design for additive manufacturing will also benefit from AI innovations, such as topology optimization, Multiphysics process simulation, and AI-generated CAD.
The 3D printing industry is poised for continued growth and innovation, driven by advances in technology, materials, and applications. As the industry continues to mature, investors can expect to see increased adoption of 3D printing in a wide range of industries, from aerospace and automotive to healthcare and consumer products.
A technician overseeing an application-specific integrated circuit design, etched on a metallic plate.
Our Methodology
To compile our list of the 11 best 3D printing and additive manufacturing stocks to buy, we sifted through internet rankings to find companies that are involved in 3D printing and additive manufacturing. We then used Insider Monkey’s Hedge Fund database to rank 11 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders: 45
Jabil Inc. (NYSE:JBL) is a global manufacturing services company that uses 3D printing to provide comprehensive design, manufacturing, and product management services to a wide range of industries, including cloud, data center, automotive, healthcare, and consumer products. The company has a strong presence in over 30 countries.
Jabil Inc.’s (NYSE:JBL) 3D printing business is a key area of focus for the company, with a particular emphasis on silicon photonics. The company has made significant investments in this area, including the acquisition of a business from Intel last year. The company’s silicon photonics business is expected to drive significant revenue growth in the coming years. Jabil Inc. (NYSE:JBL) is also working on next-generation designs, including 800G and 1.6T, and is expecting to gain a share in the medium term.
Jabil Inc. (NYSE:JBL) is actively pursuing growth opportunities in emerging markets, particularly in the areas of cloud and data center infrastructure. The company has been successful in deepening its relationship with its largest hyperscaler customer, with whom it has secured new business wins in the custom AI-driven GPU rack integration space. Additionally, Jabil Inc. (NYSE:JBL) has also won programs with a new hyperscaler customer in the silicon photonics business.
Overall JBL ranks 3rd on our list of the best 3D printing and additive manufacturing stocks to buy. While we acknowledge the potential of JBL as an investment, our conviction lies in the belief that 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 JBL 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.