TTM Technologies surges 237% on AI data center and defense demand

TTM Technologies shares have surged 237.1 percent over the past year as the printed circuit board maker benefits from AI data-center buildouts and defense spending, which together account for roughly 80 percent of net sales. The stock's rally has far outpaced the Zacks Electronics - Miscellaneous Components industry's 4.1 percent gain and the broader Computer and Technology sector's 31.4 percent appreciation.

Management expects data-center and networking sales to more than double in 2026, with the company targeting 15-20 percent organic revenue growth in 2027 and 2028, according to the company's latest guidance. The N+M asymmetrical PCB technology is entering volume production, with about $600 million in related revenue expected in the second half of 2026.

In the second quarter of 2026, data-center and networking sales surged 91 percent year over year to represent 40 percent of total revenue. Aerospace and defense revenue rose 14 percent, with backlog reaching $1.7 billion and a qualified strategic pipeline exceeding $7 billion. The new Syracuse Ultra-HDI facility should further expand advanced PCB capacity, with the ramp continuing through 2028.

TTM Technologies raised its full-year 2026 outlook to approximately $4.4 billion in net sales, implying 50.88 percent year-over-year growth, with non-GAAP EPS approaching $5 — a 95.93 percent increase. The stock trades at 2.93 times forward sales versus a sector average of 6.58 times, suggesting the market has not fully priced in the growth trajectory.

Data Center Sales Surge 91% as N+M Technology Ramps

The data-center opportunity is the primary growth engine. TTM Technologies supplies advanced PCBs, RF components, and integrated electronics that support data-center, networking, and mission-critical aerospace and defense applications. In the second quarter of 2026, data-center and networking sales represented 40 percent of total sales, reflecting strong demand from customers expanding AI infrastructure.

The N+M asymmetrical PCB technology — a specialized architecture enabling higher-density interconnects for AI accelerators — is entering volume production. Management expects improving production yields to support margin expansion as the technology scales. The company has invested in capacity to support key customer programs and the production ramp.

The defense business provides a complementary growth engine. Aerospace and defense revenues increased 14 percent year over year in the last reported quarter, supported by favorable defense-budget trends and strong bookings. Opportunities tied to Golden Dome, munition programs, and integrated electronics could add to this momentum.

European Expansion and a Discounted P/S Multiple

TTM Technologies plans to establish its initial European footprint through the proposed acquisitions of Swiss Technology Group AG in Switzerland and ILFA GmbH in Germany. The companies primarily serve the medical and aerospace and defense markets, bringing strategic technology capabilities that complement TTM's value-added approach. STG specializes in miniaturized Flex and Rigid-Flex products as well as mSAP and SAP technologies, which are expected to strengthen TTM's medical market leadership and expand its specialty MedTech and audiology exposure.

Management expects the acquisitions to be moderately accretive to adjusted EBITDA, while their contribution is excluded from the 2026 guidance, leaving potential incremental upside if the transactions close as planned.

Despite the stock's 237 percent run, TTM Technologies trades at 2.93 times forward sales, well below the sector average of 6.58 times. Among peers, nVent Electric carries a forward P/S of 4.57 times, TE Connectivity trades at 2.95 times, and Universal Display at 4.73 times. TTM's multiple sits below or broadly in line with these peers despite its stronger expected growth.

The consensus estimate for 2026 EPS has been revised upward over both the past 30 and 60 days, and the company currently holds a Zacks Rank #1 (Strong Buy). With AI data-center demand showing no signs of slowing and defense budgets remaining elevated, TTM Technologies appears positioned to sustain its growth trajectory — though whether the stock can maintain its momentum depends on execution of the N+M ramp and the European acquisitions closing as planned.

This article is for informational purposes only and does not constitute investment advice.