Flex Ltd. FLEX recently unveiled innovative reference platforms designed to address the challenges of power, heat generation and scale in modern data centers. These platforms are engineered with sustainability in mind, offering advanced solutions for liquid-cooled servers, rack systems and power products. Flex’s new liquid-cooled server designs, power modules and rack systems aim to support hyperscalers and data center operators by addressing the technical complexities associated with powering and cooling cutting-edge artificial intelligence (AI) and high-performance computing (HPC) workloads.
Flex has teamed up with JetCool to harness its patented microconvective liquid cooling technology and supply liquid-cooled solutions at a large scale. Flex’s customizable compute reference designs built on open standards seamlessly integrate with JetCool’s premium SmartPlate direct-to-chip liquid cooling solution. JetCool’s patented microconvective cooling technology allows Flex’s liquid-cooled servers to manage more than 1,500 watts per socket, providing the necessary cooling capacity to handle even the most demanding AI servers.
A key aspect of the collaboration is the introduction of JetCool’s 6U in-rack Coolant Distribution Unit (CDU). Capable of cooling up to 300kW and scalable up to 2.1MW at a row level, this unit provides robust liquid cooling distribution for high-performance data centers. The scalability and efficiency of the 6U CDU make it a core component of JetCool and Flex’s rack-level solution for AI-enabled applications. By combining JetCool’s precision liquid cooling technology with Flex’s customizable server designs, the two companies provide hyperscalers and enterprises with the tools they need to power the next generation of AI workloads.
As part of the collaboration, Flex and JetCool will demonstrate their latest innovations at the 2024 Open Compute Project Global Summit on Oct. 15-17.
Other Innovations in FLEX’s New Platform Offerings
Flex’s platform design features a modular compute platform that supports the Host Processor Module, capable of meeting the different requirements of AI and HPC applications. This design supports up to two Intel Xeon 6900 series processors with P-cores, the next generation of high-performance data center processors. The advanced platform also integrates the Flex Secure Control Module (SCM) 2.0, which is an upgraded version of its predecessor designed to offer robust server management, security and control functionalities, all within a common form factor. The Flex SCM 2.0 is compliant with OCP DC-MHS 2.0 and OCP DC-SCM 2.0 specifications, ensuring compatibility with industry standards for hyperscale data centers.
Flex’s Open Rack V3 (ORv3)-compatible rack designs are already in volume production, and the company is collaborating with leading hyperscalers to deliver these customizable racks at scale. Flex designs ORv3-compliant power shelves, power supplies and busbars, offering these as individual products or as part of vertically integrated solutions.
Flex’s new line of Intermediate Bus Converters (IBC) marks another critical advancement in its data center product portfolio. These IBCs are designed to meet the power demands of AI, machine learning and cloud applications. By expanding its range of digital, non-isolated, unregulated IBCs, Flex ensures that data center operators have access to a wider array of power solutions that support high-performance, high-efficiency workloads.
By addressing key challenges related to power, heat, and scalability, Flex is empowering data center operators to meet the growing demands of AI and HPC workloads. As the data center industry moves toward a more efficient and sustainable future, Flex’s innovations in liquid cooling and power management are poised to play a critical role in this transformation.
Flex Ltd. Price and Consensus
Flex Ltd. price-consensus-chart | Flex Ltd. Quote
Singapore-based Flex offers advanced manufacturing solutions and additional value to customers through a wide array of services, including design and engineering, component services, rapid prototyping, fulfillment and circular economy solutions.
Nonetheless, Flex expects macro headwinds to persist throughout 2024, adversely impacting various end markets. An increase in global tax rates is also concerning. Amid strength in data center power, a slowdown in the industrial sector, notably the renewable space, continues to pose headwinds. Weak demand trends (except cloud) in enterprise IT and telco spending coupled with muted consumer spending pose headwinds. In the last reported quarter, FLEX’s revenues declined 8% year over year to $6.3 billion owing to a downtrend across the Agility and Reliability Solutions business segments.
FLEX’s Zacks Rank & Stock Price Performance
FLEX currently carries a Zacks Rank #4 (Sell). Shares of the company have gained 32.5% in the past year compared with the sub-industry’s growth of 1.3%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Workday Inc. WDAY, Cirrus Logic, Inc. CRUS, and SS&C Technologies Holdings, Inc. SSNC. WDAY & CRUS presently sport a Zacks Rank #1 (Strong Buy), whereas SSNC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support. In the last reported quarter, it delivered an earnings surprise of 7.36%.
SS&C Technologies Holdings delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%. The Zacks Consensus Estimate for its earnings is pegged at $5.18.
Cirrus Logic’s performance is driven by increasing shipments in the smartphone market. Steady momentum in the laptop market and standout next-generation flagship smartphone design cushion the top line. CRUS delivered an earnings surprise of 56.6%, on average, in the trailing four quarters.
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