TTMI Stock Surges 237% in a Year: Does it Have More Room to Run?

Shares of TTM Technologies TTMI have surged 237.1% over the past year, significantly outperforming the Zacks Electronics - Miscellaneous Components industry’s 4.1% gain and the broader Zacks Computer and Technology sector’s 31.4% appreciation.

The stock’s impressive rally has been fueled by its accelerating exposure to AI data-center infrastructure and high-end aerospace and defense infrastructure, which is driving exceptional revenue/EPS growth, improving margins and strengthening future backlog visibility. The company supplies technologically advanced printed circuit boards (PCBs), RF components and integrated electronics that support data-center, networking, and mission-critical aerospace and defense applications.

TTMI stock has also significantly outpaced major peers, including nVent Electric NVT, TE Connectivity TEL and Universal Display OLED, over the past year. During this period, nVent Electric gained 98.2% and TE Connectivity returned 6.7%, while Universal Display declined 39%.

TTMI Stock Performance

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After such a remarkable run, investors must assess whether TTMI’s growth prospects still offer meaningful upside or whether the stock has already priced in much of its expected growth. Let's analyze.

AI & Defense Power TTMI’s Growth

TTM Technologies is increasingly positioned around two powerful secular megatrends — artificial intelligence and defense — which management says together account for approximately 80% of net sales. The growth momentum has become particularly evident in the Data Center and Networking business. In the second quarter of 2026, sales from this end market surged 91% year over year (YoY) and represented 40% of total sales, reflecting strong demand from customers expanding AI data-center infrastructure. Management now expects this end market’s sales to more than double in 2026, underscoring the strength and durability of the opportunity.

The investment case is further strengthened by TTMI’s N+M asymmetrical PCB technology, which is entering volume production. Management expects about $600 million of N+M revenues in the second half of 2026, with improving production yields expected to support margin expansion. TTM Technologies has also invested in capacity to support key customer programs and the production ramp.

TTMI’s defense business offers a powerful, complementary growth engine alongside its AI exposure. Aerospace and Defense revenues increased 14% year over year in the last reported quarter, supported by favorable defense-budget trends and strong bookings for new and ongoing programs. Meanwhile, A&D backlog reached $1.7 billion, while its qualified strategic pipeline surpassed $7 billion, providing strong visibility into future growth. The new Syracuse Ultra-HDI facility should further expand advanced PCB capacity, with the ramp continuing through 2028. Opportunities tied to Golden Dome, munition programs and integrated electronics could add to this momentum. Against this backdrop, management remains confident in achieving 15%-20% organic revenue growth in 2027 and 2028, reinforcing AI and defense as key pillars of TTMI’s long-term growth.

TTMI Expands European Footprint, Boosting Growth

TTMI plans to establish its initial European footprint through the proposed acquisitions of Swiss Technology Group AG (“STG”) in Switzerland and ILFA GmbH in Germany. The companies primarily serve the medical and aerospace & defense markets and bring strategic technology capabilities that complement TTMI’s up-the-chain, value-added approach. Management views these transactions as the first step toward its long-term goal of becoming a significant competitor in Europe, creating scope for further strategic acquisitions.

The acquisitions could broaden TTMI’s addressable opportunity by adding long-cycle businesses, new customers and specialized technologies. STG, in particular, specializes in miniaturized Flex and Rigid-Flex products as well as mSAP and SAP technologies, which are expected to strengthen and diversify TTMI’s medical market leadership and expand its specialty MedTech and audiology exposure. STG is also expected to enhance TTMI’s technology development in substrates and advanced packaging. Importantly, management expects the acquisitions to be moderately accretive to adjusted EBITDA, while their contribution is excluded from TTMI’s 2026 guidance, leaving potential incremental upside if the transactions close as planned.

TTMI’s Raised 2026 Outlook Signals Strong Momentum

TTMI raised its full-year 2026 outlook and expects net sales of approximately $4.4 billion, reflecting continued strength across its key end markets. The outlook is broadly in line with the Zacks Consensus Estimate of $4.39 billion, which implies a robust 50.88% year-over-year revenue growth.

For the bottom line, TTMI expects non-GAAP EPS to approach $5, above the Zacks Consensus Estimate of $4.82, which points to an impressive 95.93% year-over-year increase. The consensus estimate has been revised upward over both the past 30 and 60 days.

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Valuation: Opportunity to Buy TTMI Stock at a Lower P/S

Despite its strong growth prospects, TTM Technologies trades at a forward P/S of 2.93X, significantly below the sector average of 6.58X, indicating the stock appears discounted relative to its growth prospects and financial strength.

TTMI also trades at a competitive valuation compared with several industry peers. nVent Electric carries a forward P/S of 4.57X, while TE Connectivity trades at 2.95X and Universal Display at 4.73X. Thus, TTMI’s 2.93X multiple is below or broadly in line with these peers, despite its strong expected growth, potentially offering investors an attractive entry point.

TTMI Forward 12-Month P/S Ratio

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Conclusion

Despite an outstanding stock performance over the past year, TTM Technologies continues to show strong growth potential. This outlook is further bolstered by the rising demand for AI data centers, opportunities in the defense sector, ‘N+M’ expansion, and growth-oriented initiatives in Europe. A promising outlook through 2026 and a relatively attractive P/S valuation suggest that TTMI stock is currently a good buy, with room for further price appreciation in the future.

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

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

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