While favorable earnings reports from companies in the AI supply chain increase confidence in TTM Technologies Inc's ( TTMI ) datacenter and networking business, the current geopolitical climate supports defense businesses, according to Needham.

The TTM Technologies ( TTMI ) Analyst: Analyst James Ricchiuti reiterated a Buy rating, while raising the price target from $35 to $43.

The TTM Technologies Thesis: While AI-related chip companies have reported healthy earnings, electronic circuit board manufacturer Jabil Inc ( JBL ) projected its AI-related business to grow by 50% in 2025, with "sustained robust demand," Ricchiuti said in the note.

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Although the ongoing conflicts may not drive TTM Technologies' ( TTMI ) A&D (aerospace and defense) business in the near term, it provides "strong long-term tailwinds in the defense business, as evidenced by rising defense budgets in the U.S., Europe and the Middle East and heightened emphasis on defense and security at this week's Paris Air Show," he added.

There is high visibility into roughly 80% of the company's revenues in 2025, driven by its strong backlogs in its A&D business, which represented 47% of first-quarter revenues, and continued momentum in its Data Center Computing business, which contributed 21% of revenues, the analyst stated.

"If the new Penang facility reaches break even in Q3, we believe TTM could see even stronger profit tailwinds, but even without this, we see enough strength in the business for TTM to meet or exceed estimates this year," he further wrote.

TTMI Price Action: Shares of TTM Technologies ( TTMI ) had declined by 0.54% to $36.77 at the time of publication on Friday.

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