TTM Technologies Rises 28% in a Month: Should You Buy the Stock?

TTM Technologies TTMI shares have gained 28% over the past month, significantly outperforming the broader Zacks Computer and Technology sector’s return of 8.3% and the Zacks Electronics - Miscellaneous Components industry’s growth of 10%.

TTM Technologies’ most recent rally is heavily influenced by its impressive first-quarter 2025 results, driven by solid year-over-year top and bottom-line growth, and an encouraging outlook for the second quarter of 2025. Revenues climbed 14% year over year to $648.7 million, beating the Zacks Consensus Estimate by 4.3% and topping the company’s guidance of $600-$640 million. TTMI’s bottom line of 50 cents per share beat the Zacks Consensus Estimate by 28.21% and exceeded the company’s projection of $0.37-$0.43, setting a first-quarter record.

The company's strong positioning in high-growth markets, such as aerospace and defense, data center computing and networking, along with its commitment to operational efficiency, suggests continued positive momentum in the near term.

TTMI Gains Momentum Across Core Sectors

TTM Technologies’ success is underpinned by robust performance across its most strategic end markets — aerospace and defense, data center computing, and networking. These sectors are benefiting from secular trends, such as increased global defense spending and the rapid adoption of AI-driven technologies.

TTM Technologies, Inc. Price and Consensus

 

TTM Technologies, Inc. price-consensus-chart | TTM Technologies, Inc. Quote

Aerospace and Defense remains a growth engine for TTMI, contributing a commanding 47% to total revenues in the first quarter of 2025, with year-over-year revenue growth of 15%. This strength is fueled by sustained demand and favorable macro tailwinds from rising defense budgets. The company secured significant bookings tied to the Javelin and LTAMs-related programs and solidified its standing in mission-critical applications. A strong $1.55-billion backlog provides high visibility into future demand across the defense value chain.

With the generative AI boom driving capital investment in compute infrastructure, TTMI’s data center computing segment continues to benefit from strong industry tailwinds. Contributing 21% to first-quarter 2025 revenues, the segment grew 15% year over year, reflecting increasing design wins and higher production volumes from hyperscale data center clients. The company expects the segment to maintain its revenue contribution at 21% in the upcoming quarter.

The company’s networking business emerged as one of TTMI’s fastest-growing segments in the first quarter of 2025, delivering a robust 53% year-over-year increase. This surge was driven by renewed demand from key customers, particularly for switch-related products tied to AI infrastructure upgrades.

Expanding Clientele Bodes Well for TTMI

TTM Technologies continues to build momentum on the strength of a deeply diversified and resilient customer base, supporting approximately 1,400 clients worldwide, including defense, computing and healthcare.

Revenues from the top five customers grew to 45% of total revenues in the first quarter of 2025, up from 42% a year earlier. This growth highlights the company's increasing engagement with key strategic partners and its continued success in meeting the evolving technical needs and operational priorities of its largest clients.

TTMI's client portfolio includes prominent companies such as Apple AAPL, Cisco Systems CSCO, Tesla TSLA, Raytheon, and Bosch. Its longstanding relationships with Apple, Cisco and Tesla highlight TTM Technologies’ reputation as a mission-critical supplier, delivering high-quality, time-sensitive solutions across diverse and demanding end markets. TTMI supplies advanced printed circuit boards (PCBs) to Apple for consumer electronics, high-performance PCBs and RF components to Cisco for networking infrastructure, and automotive-grade PCBs to Tesla for electric vehicle systems and autonomous technologies.

TTMI Offers Promising Q2 Outlook

For the second quarter of 2025, the company expects total revenues of $650-$690 million. The Zacks Consensus Estimate for revenues is pegged at $667.99 million, indicating 10.39% year-over-year growth.

TTMI projected non-GAAP earnings of 49-55 cents per share for the second quarter of 2025. The consensus mark for earnings is pegged at 52 cents, which has risen three cents over the past 30 days, suggesting a year-over-year rise of 33.3%.

Conclusion

TTM Technologies continues to thrive on strong momentum in defense, AI infrastructure and networking. A growing backlog and resilient customer demand in core markets set the stage for continued revenue acceleration and strategic expansion in 2025 and beyond.

TTM Technologies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research