New York, May 31, 2026, 16:05 (EDT)
Sanmina Corp. (SANM) cooled off Friday after a strong May rally, as shares closed at $259.73 on May 29, down 1.33%. The dip came after gains earlier in the holiday-shortened week left the stock up 5.4% from its May 22 close. The stock jumped 5.49% on Tuesday and reached $270.49 on Thursday, but gave back ground as sellers stepped in.
AI hardware stocks are still strong, so the move stands out. The NYSE included May 25 as a market holiday in 2026 for Memorial Day. On Friday, Reuters said the S&P 500, Nasdaq, and Dow all closed at record highs, with the Nasdaq up 2.39% on the week. Ohsung Kwon, chief equity strategist at Wells Fargo, told Reuters there was “euphoric sentiment” around AI. He said earnings had “driven” the rally. New York Stock Exchange
Sanmina (San Jose, California) is an electronics manufacturing services company, or EMS, handling assembly and support work for electronic systems used by other firms. The company’s position in the AI sector shifted when it closed its acquisition of ZT Systems’ data center infrastructure manufacturing unit from AMD in October 2025. Sanmina said the deal would help it get into cloud and AI markets faster.
Sanmina’s stock moved after its late April operating update. The company posted fiscal Q2 revenue of $4.01 billion. GAAP diluted EPS came in at $1.70, with non-GAAP diluted EPS at $3.16. GAAP follows U.S. accounting rules; non-GAAP strips out certain items. The board approved a $600 million buyback. CEO Jure Sola said “ZT Systems revenue significantly exceeded our expectations.” CFO Jon Faust pointed to the buyback as a sign of “our strong balance sheet.” Sanmina Investor Relations
Flex gained 4.1%, Celestica was up 9.8% and Jabil also moved higher, putting up a better showing than Sanmina, which dropped. The comparison helps, but doesn’t settle it: investors are still sorting out which names have steady AI-server demand and which are just catching a lift from the momentum in the group.
Sanmina’s next event won’t be an earnings call. The company is on the schedule for the BofA Securities 2026 Global Technology Conference, set for June 3 at 10:00 a.m. Pacific. Investors want to hear about ZT demand, margins, and capacity, especially after April’s results pushed expectations up.
Market reaction could hinge on more than just the big names. Reuters said investors are watching both the May payrolls report set for June 5 and Broadcom’s earnings. Both are seen as gauges for the AI story and where rates might go next. Liz Ann Sonders, chief investment strategist at Schwab Center for Financial Research, told Reuters a strong jobs number with inflation still up could “change the outlook for Fed policy.” Reuters
Sanmina’s setup leaves little room for error. Four analysts surveyed by S&P Global rate it Hold, with an average target of $212.25—lower than where shares finished Friday. If ZT demand drops off, margins slip, or higher yields put pressure on growth stocks, Sanmina could lose ground quicker than it gained.
For now, price action shows investors still want AI exposure but aren’t chasing everything. Sanmina outpaced the Nasdaq last week but closed below its Thursday peak. Monday’s open should give a clearer read on whether that was just some weekend de-risking or if a pickier tape is setting in.
