TTM Technologies

TTM just posted its biggest quarter ever, with 846 million dollars in sales, up 30% year over year. Their data center business now makes up 36% of total revenue, riding the wave of AI infrastructure spending from hyperscalers like Amazon and Meta. Demand for their specialized 60+ layer circuit boards is not slowing down anytime soon.

Almost half of TTM's money comes from aerospace and defense customers, including major military programs like Patriot missiles and Navy radars. They have a 1.6 billion dollar backlog of defense orders and are taking in new orders 41% faster than they can fulfill them, meaning years of guaranteed work. When governments spend on defense, TTM wins.

TTM is building three new factories at once in Malaysia, New York, and Wisconsin, and getting them running smoothly is harder than expected. They burned through 85 million dollars in free cash flow last quarter as capital spending stayed elevated. If these expansion plans stumble, profits could suffer.

TTM has put most of its eggs in two baskets: AI infrastructure and defense. With 80% of sales tied to these two areas, there is not much cushion if either one cools off. Two customers alone represent 23% of total revenue, so any disruption at the top of the customer list would hit hard.