A Message From Monument Traders Alliance

Jensen Huang said a little-known corner of the AI world is a “once-in-a-generation opportunity.”

As you probably know, he's the CEO of NVIDIA, the top AI chip company in the world.

Strangely, this “once-in-a-generation opportunity” has nothing to do with cutting edge AI chips, programs like ChatGPT, or data center buildouts.

Instead, it involves AI breaking free of computers and the internet to work right beside us in the real world.

And that’s why Jensen Huang also called it "the dawn of a new industrial revolution."

What is he talking about?

See the story, including details on my #1 pick in this exciting space.

NVDA CEO’S “ONCE IN A GENERATION OPPORTUNITY” REVEALED

To your wealth,
Matt McCall

P.S. I called NVDA, back when it was $6. It has shot up 3,100% in 6 years. So, I think NVDA’s CEO knows what he’s talking about. Click here for more details.

Flex's AI Infrastructure Spin-Off Could Unlock Hidden Value

Written by Jeffrey Neal Johnson. Originally Published: 10/13/2026.

Hyperscaler artificial intelligence (AI) expansion is colliding with significant data center construction constraints, positioning prefabricated power infrastructure as a critical part of the compute supply chain. Traditional facility build-outs are being slowed by power grid limitations, permitting hurdles and on-site integration challenges.

By launching integrated modular AI racks ahead of a planned 2027 spin-off, Flex (NASDAQ: FLEX) is creating a potential sum-of-the-parts valuation arbitrage. The market currently prices the company at a legacy contract manufacturing discount, meaning investors who accumulate shares now could capture the pure-play AI infrastructure multiples that may apply once the higher-margin assets are separated.

Bypassing Gridlock With Prefab Power

Building an AI data center is fundamentally different from building traditional cloud facilities. Standard data center racks have historically consumed roughly 10 to 15 kilowatts of power. AI infrastructure, driven by next-generation graphics processing units, pushes rack densities from about 40 to more than 100 kilowatts. Air cooling cannot manage the thermal output at these levels, making advanced liquid cooling necessary. Integrating liquid cooling, power conversion and compute hardware on-site introduces logistical delays.

Flex announced an expanded portfolio of prefabricated modular data center solutions on Monday, Oct. 12, to address these challenges. The new product line features Axiom AI Modules, which integrate 800-volt direct-current power racks, high-density compute infrastructure and advanced cooling distribution units. Instead of shipping discrete components to a facility for on-site assembly, Flex builds and tests these integrated systems in a controlled factory environment.

According to Flex, this modular, factory-built approach can reduce deployment timelines by up to 50% compared with traditional construction methods. While site developers pour concrete and install high-voltage utility lines, Flex can manufacture and test the compute and cooling infrastructure in parallel. Delivering fully integrated systems addresses a major deployment challenge for hyperscalers racing to bring capacity online.

Constructing Multiples: Separating Legacy From Infrastructure

The modular product launch adds to the growth opportunity behind a major corporate restructuring. In the first quarter of calendar 2027, Flex plans to spin off its cloud and power infrastructure segment as an independent, publicly traded entity named Axiom Solutions International. The separation would isolate the higher-margin data center hardware business from Flex's legacy electronic manufacturing services operations.

The valuation disconnect is central to the investment thesis. Historically, electronic manufacturing services businesses have traded at forward price-to-earnings multiples of 18x to 25x because of the cyclical nature of consumer electronics and tight operating margins. Pure-play AI power and cooling infrastructure equities routinely command forward multiples of 30x to 45x, supported by highly visible, multiyear capital expenditure cycles from top-tier technology firms.

Flex currently trades at a forward price-to-earnings ratio near 27, with an aggregate market capitalization of roughly $43 billion. The recently announced preferred investment in Axiom establishes an initial enterprise valuation of $37.5 billion for the planned standalone company. That figure provides a reference point for investors, but it does not guarantee Axiom's eventual public-market valuation.

If the market values Axiom at $37.5 billion, it would value the legacy manufacturing business at just over $6.3 billion. The legacy business still generates the vast majority of Flex's historical top-line revenue. Blending these two distinct business models restricts multiple expansion, but the pending spin-off could prompt the market to re-rate the data center assets at infrastructure multiples.

Mergers, Capital, and the Standalone Stub

Preparing a multibillion-dollar infrastructure segment for independence requires significant balance sheet engineering. The planned acquisition of EPC Power for approximately $4.4 billion directly supports this transition. EPC Power brings critical grid-scale inverter and 800-volt power-conversion intellectual property in-house. This technology determines how utility-grade power is stepped down and distributed to high-density AI racks, giving Axiom control over the entire power delivery lifecycle.

To establish a standalone capital structure, Flex announced an agreement for a $2 billion convertible preferred investment from entities including General Catalyst and Koch Equity Development. The agreement establishes an initial $37.5 billion enterprise valuation for Axiom, with conversion terms tied to that valuation. The financing is expected to help fund the EPC Power acquisition and strengthen Axiom's capital position ahead of the separation.

Investors need to evaluate the downside risks tied to this structure. Flex has a guaranteed buyback obligation on those preferred shares if the separation fails to materialize by the Dec. 31, 2027, deadline. Market analysts also need to evaluate the earnings power of the remaining manufacturing stub. Excluding the infrastructure segment, the legacy contract manufacturing business generated approximately 93 cents per share in fiscal 2026. Today's buyers are betting that the combined value of Axiom shares and the legacy stub will exceed the current blended equity price.

Topping Out: Positioning Ahead of the Record Date

Institutional positioning is another factor investors may monitor ahead of the corporate action. Entities such as Veracity Capital LLC and Insight Wealth Strategies LLC have initiated new positions. These allocations follow earlier positioning by hedge funds such as Third Point and Soros Capital Management, indicating that institutional capital is rotating into the AI power infrastructure thesis.

Insider activity shows a net-selling trend over the past quarter. While insider selling can signal caution, it is also a standard liquidity event following an appreciation of about 109% over the past 12 months. Executives frequently diversify their portfolios after prolonged technical runs.

Market mechanics also indicate steady fundamental trading rather than speculative fervor. Short interest sits at roughly 2.4% of the float, representing around 8.9 million shares. With a days-to-cover ratio of roughly 2.5, the potential for a pre-spin short squeeze appears limited. Flex's trajectory depends primarily on earnings execution and progress toward the 2027 separation.

Investors looking for exposure to the data center build-out may want to add Flex to their watchlist as the spin-off date approaches. The rollout of modular AI infrastructure strengthens the commercial offering of the business expected to become Axiom, although its standalone operating performance remains to be demonstrated. Cautious investors may prefer to wait for the company's fiscal second-quarter 2027 earnings report, scheduled for Wednesday, Oct. 28, to assess whether the core manufacturing segment can maintain stable cash flow ahead of the separation.

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