Sanmina revenue surges 59% driven by AI infrastructure demand

Sanmina Corporation reported fiscal Q1 2026 revenue of $3.19 billion, a 59% year-over-year increase driven by cloud infrastructure and AI demand (Sanmina IR). The company guides Q2 revenue to $3.1–$3.4 billion (midpoint +62% YoY) and expects $16 billion in annual revenue by 2027 from AI-related growth. AI server buildout is shifting memory demand from consumer devices to data centers, creating DRAM and NAND shortages expected through 2027, according to Synopsys CEO Sassine Ghazi. Reuters reports rising DRAM and NAND prices that are squeezing consumer device makers. Samsung secured a key memory supply deal with Nvidia, weighing on Micron shares (Barron's). Analysts project Micron's AI-driven memory business could quadruple profits within two years (MarketWatch). Intel warned of rising costs to meet AI chip demand after Q4 results (WSJ).

Why It Matters

• Secure memory supply early: procure DRAM/NAND now to mitigate shortages projected through 2027 and limit exposure to price spikes.
• Accelerate supplier partnerships: work with EMS providers like Sanmina to speed AI data-center hardware deployments amid rapid revenue growth.
• Plan for higher costs: model 20–300% memory price increases to evaluate impacts on server total cost of ownership and consumer-device margins.
• Evaluate memory vendors: assess Micron and Samsung for HBM scaling and long-term supply agreements to support high-performance AI workloads.