JBL Expands Photonic Portfolio With New Transceivers: Stock to Gain?

Jabil Inc. JBL recently expanded its photonics product portfolio with the launch of new transceivers. With their capability to transfer data at speeds of up to 1.6 Terabits per second, these cutting-edge solutions are tailored to support the rising demands of artificial intelligence/machine learning workloads, high-performance computing, cloud infrastructure and data center interconnects.

More on JBL’s New Launch

The 1.6T transceivers are built on Intel Corporation’s INTC industry-leading Silicon Photonics engine. This technology combines the silicon integrated circuit with a semiconductor laser to enable high-bandwidth, power-efficient connectivity for data centers and 5G applications. This Intel technology is particularly crucial for addressing the escalating demands of data centers and the burgeoning field of artificial intelligence, both of which necessitate rapid and voluminous data transfers. 

The development of these 1.6T transceivers underscores Intel's ongoing advancements in this field, pushing the boundaries of data transmission speeds. Available in DR8, DR8+ and 2xFR4 configurations, the transceivers can reach an impressive speed of 200 Gigabits per lane on both its electrical and optical interfaces, providing robust solutions for intra-data center connectivity while maintaining seamless compatibility with existing systems. 

Another key advantage of the solution is its ability to significantly double the bandwidth of data center racks without requiring any changes to the current infrastructure. This makes it a cost-effective and scalable solution for businesses aiming to upgrade their data transfer capabilities.  

Will Strong Portfolio Additions Aid JBL’s Prospects?

Jabil has an established global presence and a worldwide connected factory network, which enables it to scale production in response to evolving market dynamics. The company is expected to benefit from the long-term adoption of 5G wireless and cloud computing. With more than a decade of experience in developing and manufacturing cutting-edge products ranging from advanced photonics packaging to optical networking products and liquid cooling systems, Jabil continues to be at the forefront of photonics innovation. 

With the launch of the 1.6T transceivers, the company continues its commitment to advancing Photonics technology by providing innovative solutions that meet the evolving needs of the industry, reinforcing its position as a leader in the field and addressing the dynamic needs of the industry.

These advancements are expected to generate incremental demand for Jabil’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward. 

JBL Stock Price Performance

Shares of Jabil have plunged 1.3% over the past year against the industry’s growth of 16.5%.

JBL’s Zacks Rank and Other Key Picks

Jabil currently carries a Zacks Rank #2 (Buy). 

A couple of other top-ranked stocks in the broader industry have been discussed below.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. The company is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.

InterDigital engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. 

CommScope Holding COMM sports a Zacks Rank #1 at present. It has a long-term growth expectation of 19.37%. 

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. Since its inception in 1976, the company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration. CommScope currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. 
 








  

 

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