Flex to Spin Off Computing Infrastructure Unit Amid AI Infrastructure Boom

Key Facts

1Flex plans a tax-free spin-off of its Computing Infrastructure (CPI) segment in Q1 2027.

2The company guides for 18% revenue growth in FY2027, driven by AI infrastructure demand.

3Flex trades at a forward P/S of 1.7, nearly 50% below the sector median.

Amid the global race to expand data center capabilities, Flex Limited has announced a strategic plan to spin off its Computing Infrastructure (CPI) segment in a tax-free transaction scheduled for Q1 2027. Driven by surging demand for AI infrastructure, the company is guiding for an 18% revenue growth in fiscal year 2027. According to reports, Flex is currently trading at a forward price-to-sales (P/S) ratio of 1.7, which represents a discount of nearly 50% compared to the sector median.

This move aligns with broader industry trends where electronic manufacturing peers like Jabil and Sanmina are seeing robust demand for liquid cooling and advanced power solutions for AI workloads; Jabil recently reported margin expansion linked to AI-driven contracts per market data. By spinning off the CPI unit, Flex aims to unlock the value of its high-growth assets, a strategy often employed in the sector to re-rate businesses that are perceived as undervalued relative to specialized technology providers.

In the markets, FLEX shares stood at $147.21 (at close June 09, 2026), having traded between a high of $156.53 and a low of $139.67 during the session. Investors should monitor further details regarding the spin-off timeline and upcoming macro catalysts, such as the U.S. Initial Jobless Claims scheduled for later this week, which could influence broader sentiment regarding capital expenditure in the tech infrastructure space.