Insider Monkey’s investor database shows several prominent growth investors converging on a relatively obscure AI infrastructure name. Stephen Mandel’s Lone Pine Capital disclosed a 2.74 million-share position in TTM Technologies in Q2, worth about $512 million as of June 30. Alex Sacerdote’s Whale Rock Capital increased its TTMI stake by about 20% during Q2 to 4.23 million shares, worth roughly $791 million at quarter-end, making TTMI its fourth-largest disclosed U.S. equity position.
TTM Technologies, Inc. (NASDAQ:TTMI) is a manufacturer of printed circuit boards, RF components and other advanced electronic systems.
AI Demand Is Already Showing Up in the Numbers
TTM Technologies, Inc. (NASDAQ:TTMI) is seeing AI demand translate into actual revenue growth. On August 5, the company said second-quarter sales reached a record $1 billion, up 37% YoY. Its Data Center and Networking business generated 40% of revenue and grew 91%, driven by continued AI infrastructure demand. Management expects the segment to account for 49% of third-quarter sales and more than double for full-year 2026.
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Demand indicators remain strong as well. TTM reported a Q2 book-to-bill ratio of 1.49, suggesting orders are still running comfortably ahead of shipments.
TTMI closed August 21 at $110.54, down about 21% over five trading days and roughly half from its June peak of $223.83. The decline has erased a large part of the stock’s earlier AI-driven rerating.
At that price, TTMI trades at roughly 23 times the current 2026 adjusted EPS consensus of $4.85. Current consensus calls for adjusted EPS of about $6.89 in 2027, which would put the stock at only around 16 times next year’s earnings. On its face, that does not look particularly expensive for a company expected to grow earnings by more than 40% next year.
The risk to the thesis is a wider industry slowdown in AI infrastructure spending. Data Center and Networking is becoming an increasingly large part of TTM’s business, so a pullback in hyperscaler spending would hit growth disproportionately. But of course, it doesn’t look like things would move in that direction anytime soon, and management continues to expect Data Center and Networking revenue for the company to more than double in 2026.
The $1.1 billion acquisition of Epiq Solutions adds some execution and financing risk, but the balance-sheet concern also looks manageable. TTM expects net leverage to rise to about 2.3x at closing before declining to 1.5x-1.7x within 12 to 18 months, while Epiq is expected to improve adjusted EBITDA margins immediately and become accretive to non-GAAP EPS in 2028.
