TTM Technologies TTMI shares have surged 88.6% year to date, significantly outperforming the Zacks Electronics - Miscellaneous Components industry, which has declined 14.3% over the same period, as well as the broader Zacks Computer and Technology sector's 16.6% gain. The stock has also outpaced peers Sanmina SANM, Amphenol APH and TE Connectivity TEL, shares of which have returned 32%, 13.4% and declined 10.9%, respectively. The rally has been driven by robust demand for advanced printed circuit boards (PCBs) and engineered products used in artificial intelligence infrastructure, aerospace and defense applications, along with continued execution on strategic capacity expansion.
With the stock's rally sharply outpacing its peer group, let's dig deeper to understand what investors should do with the stock at current levels.
TTMI’s YTD Performance
Image Source: Zacks Investment Research
AI Infrastructure Demand Remains a Key Growth Driver
TTM Technologies continues to benefit from accelerating investment in AI infrastructure, driving demand for its advanced PCBs, substrates and engineered solutions used in AI servers and high-performance computing systems. The company has strengthened its position in the data center and networking market by supplying increasingly complex interconnect solutions required for next-generation AI applications, working closely with hyperscale customers on multiyear technology roadmaps spanning innovations such as zero stub design and asymmetrical boards that separate power and signal layers. This positioning is expected to allow TTMI to keep pace with the highest complexity end of the PCB market as AI infrastructure buildouts extend into future years.
In the first quarter of 2026, revenues from the data center and networking end market increased 61% year over year and accounted for 36% of total sales, while the Commercial segment posted a book-to-bill ratio of 1.65, underscoring strong order momentum. While Amphenol and TE Connectivity continue expanding their own AI connectivity portfolios and Sanmina remains a key competitor in electronics manufacturing services, TTMI's growing complexity edge reinforces its opportunity across the broader AI hardware ecosystem.
Defense Momentum and Capacity Expansion Support Growth
TTM Technologies maintains a long-standing position in aerospace and defense electronics, an end market benefiting from sustained budget tailwinds and a geopolitical backdrop that continues to favor advanced radar, communication and munitions programs. The company's involvement in high-profile initiatives, including its participation in the Artemis II mission and an early award tied to the Golden Dome program, points to expanding opportunities across both established and emerging defense priorities in the years ahead. To support this growth alongside rising AI infrastructure demand, TTMI is accelerating capacity expansion across Penang and its new Eau Claire facility, broadening a manufacturing footprint that spans China, Malaysia and the United States. This buildout should position the company to capture demand more efficiently as programs scale, though it also raises capital intensity and adds execution risk as both facilities ramp toward full utilization. The aerospace and defense segment posted a book-to-bill ratio of 1.10 in the first quarter, supporting a program backlog of $1.6 billion.
The Zacks Consensus Estimate for TTMI's 2026 EPS is pegged at $4.13, steady over the past 30 days, while indicating 67.89% growth over the figure reported a year ago, reflecting the durability of these combined growth drivers.
TTM Technologies, Inc. Price and Consensus
TTM Technologies, Inc. price-consensus-chart | TTM Technologies, Inc. Quote
TTMI Trades at a Premium Valuation
TTMI currently trades at a forward price-to-earnings (P/E) multiple of 26.62X, above the Zacks industry average of 24.66X and the sector average of 24.59X. The stock also trades above Sanmina at 15.67X and TE Connectivity at 16.31X, though it remains below Amphenol at 29.27X. This premium reflects the market's recognition of TTMI's concentrated exposure to AI infrastructure and defense demand relative to its more diversified peers. With shares rallying sharply year to date, much of this favorable outlook appears reflected in the current price.
TTMI’s P/E Valuation
Image Source: Zacks Investment Research
Conclusion
TTM Technologies remains well-positioned across AI infrastructure and defense modernization, supported by a growing program backlog and a capacity expansion plan aligned with durable multiyear demand. However, rising capital intensity, execution risk tied to accelerated buildouts across Penang and Eau Claire and a valuation that already reflects much of this favorable outlook limit near-term upside visibility following the stock's sharp year-to-date rally.
TTMI currently carries a Zacks Rank #3 (Hold) and a Growth Score of A, suggesting that existing investors may benefit from maintaining their positions, while new investors could benefit from waiting for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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TTM Technologies, Inc. (TTMI): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).