So, you want to build more artificial intelligence infrastructure in the United States? It helps to have friends in the right places. Flex Ltd. (FLEX) stock ticked higher on Monday after the company announced it's teaming up with Advanced Micro Devices Inc. (AMD) to do just that.
The core of the deal is manufacturing. Flex has started U.S.-based production for AMD's Instinct MI355X GPU platforms. The work is already happening at Flex's headquarters in Austin, Texas, and the companies expect to ramp up to higher volumes next quarter.
This isn't just a one-off job. The collaboration is set up to handle not only the current generation of AMD's Instinct AI accelerators but future platforms as well. The goal is to meet the exploding demand for the powerful computing systems needed to run large AI models in data centers.
Here's what Flex will be doing: taking eight of AMD's Instinct GPUs and other essential components and assembling them into a single, high-density system. These assembled units will then go through rigorous testing and validation before they're shipped out to customers.
For Flex, this deal cements its role as a go-to, U.S.-based manufacturer for advanced AI infrastructure. As big cloud providers (hyperscalers) and other enterprises expand their AI deployments, this partnership could mean a nice, steady stream of incremental business.
For AMD, the benefits are strategic. It adds much-needed domestic manufacturing capacity and diversifies its supply chain for its accelerator products. This is a key competitive point as it goes head-to-head with rivals like Nvidia Corp. (NVDA) and Intel Corp. (INTC), who are also pushing their own AI hardware platforms.
What's the Market Saying About Flex Stock?
The news gave Flex shares a modest lift, but if you look at the charts, the picture is a bit murkier. From a technical analysis perspective, the stock is currently trading about 4.5% below its 20-day simple moving average and 8.2% below its 100-day average. That often suggests a bearish trend in the short to medium term.
Zooming out, the 12-month view is sunnier—shares are up roughly 25% and are trading closer to their 52-week highs than their lows. The Relative Strength Index (RSI) is sitting right at 50, which is neutral territory. However, the MACD indicator is at 0.10, which is below its signal line of 0.15, hinting at some bearish pressure. Put it together, and you get mixed signals on the stock's momentum.
Traders are watching a key resistance level at $65.00 and a major support level at $60.00.
