What Happened?
Shares of electronics manufacturing services company Sanmina (NASDAQ:SANM) jumped 3.4% in the afternoon session as the stock gained ground amid broader positive market sentiment, with no major company-specific news released.
Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.
Sanmina's stock was likely still benefiting from the major strategic news announced previously. The company recently revealed a transformative deal to acquire ZT Systems' data center infrastructure manufacturing business from AMD for up to $3 billion. This acquisition is highly significant as it is expected to be accretive to earnings and could double Sanmina's revenue within three years, while also strengthening its position in the high-growth Cloud and Artificial Intelligence (AI) markets. This recent development likely sustained positive investor sentiment and momentum for the shares.
After the initial pop the shares cooled down to $102.06, up 0.8% from previous close.
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What Is The Market Telling Us
Sanmina’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Sanmina is up 35.2% since the beginning of the year, and at $102.06 per share, it is trading close to its 52-week high of $104.92 from July 2025. Investors who bought $1,000 worth of Sanmina’s shares 5 years ago would now be looking at an investment worth $3,881.
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