Prediction: A $10,000 Investment in This Artificial Intelligence (AI) Hardware Stock Will At Least Double by 2030 (Hint: It’s Not Nvidia or Micron)

Nvidia and Micron Technology have made investors significantly richer over the past five years, and there is a solid chance that both artificial intelligence (AI) hardware specialists will surge higher by the end of the decade amid strong demand for AI data center infrastructure.

An investment of $10,000 in Nvidia stock made five years ago is now worth an impressive $102,000. Meanwhile, Micron has turned a similar investment into nearly $135,000 over the same period. The strong earnings growth rate of these semiconductor stocks, along with their attractive valuations, is likely to lead to more gains by 2030. However, there's another emerging AI hardware play that could make investors significantly richer by the end of the decade.

Jabil (NYSE:JBL) is a contract electronics manufacturer that designs, engineers, and manufactures electronic components and hardware for multiple industries. AI has supercharged its growth, and I won't be surprised to see the stock doubling by 2030. Let's see why that may be the case.

Image source: Getty Images.

Jabil is on track to clock stronger growth due to AI servers

Jabil's fiscal 2026 ended on a strong note. The company reported $36 billion in revenue for the fiscal year ending Aug. 31, up 21% from the prior year. The company's core operating margin increased by 40 basis points last fiscal year, resulting in a 34% increase in non-GAAP earnings per share to $13.09.

The growth rate improved in fiscal 2025, when Jabil posted a 3% increase in revenue and a 15% increase in earnings. AI played a central role in boosting Jabil's growth. The company manufactures AI server racks, cooling systems, and power management solutions for major hyperscalers, such as Meta Platforms, Amazon, and Alphabet's Google, as noted by investment bank UBS.

These partnerships helped Jabil deliver $14.4 billion in AI revenue in fiscal 2026, up significantly from $5.4 billion in the previous year. Importantly, Jabil expects its AI revenue to jump to $22.1 billion in fiscal 2027, implying a 54% increase over last year.

However, don't be surprised to see Jabil's AI revenue growing at a stronger pace. That's because Jabil's hyperscale customers are ramping up their AI infrastructure deployments. For instance, Jabil management noted on the latest earnings call that its "second hyperscale customer started with a single capability and has grown into a storage program above $1 billion in annual revenue."

The company added a third hyperscale customer in the third quarter of fiscal 2026. Given that Jabil is offering more than just server racks, its customers end up buying cooling and power management solutions as well. This land-and-expand strategy helps Jabil to get more business from existing customers, enabling it to clock stronger growth in both revenue and earnings.

Also, there is a solid chance that Jabil's AI-focused customer base will expand further owing to continued investments in AI infrastructure. For instance, Gartner expects the AI infrastructure market to reach $1.48 trillion in revenue in 2026 from $982 billion last year. The firm expects the size of this market to expand to $1.98 trillion next year.

AI pioneer Nvidia's CEO Jensen Huang estimates that AI infrastructure spending could reach $3 trillion to $4 trillion by 2030. As server racks, cooling systems, and power management solutions play a critical role in AI data centers, the demand for Jabil's offerings should continue improving.

So, it is easy to see why the company expects a stronger increase of 23.6% in revenue in the current fiscal year to $44.5 billion. Additionally, it sees a 34% jump in non-GAAP earnings per share to $17.55. However, Jabil could exceed expectations amid strong AI infrastructure spending, which is precisely why analysts have significantly raised their growth expectations for the company.

Here's how the stock could easily double

Jabil's earnings per share are poised to grow at healthy double-digit rates over the next three years, according to consensus estimates.

JBL EPS Estimates for Current Fiscal Year data by YCharts

The chart above indicates that the company could report $25.93 in earnings per share in fiscal 2029 (ending in August 2029). Assuming its bottom line grows by even 15% in fiscal 2030, its earnings per share could reach $29.82 after four years. If this AI stock trades at even 22 times earnings at that time, in line with the tech-laden Nasdaq-100 index's forward earnings multiple, its stock price could reach $660.

That's 128% higher than Jabil's stock price, indicating that a $10,000 investment in this stock could be worth over $22,750 by the end of the decade. However, if Jabil outpaces analysts' expectations, it could command a premium valuation and deliver bigger gains. So, if you've $10,000 in investible cash right now, buying Jabil with that money could be a smart move given its healthy upside potential.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.