TTM Technoloies: Good Balance Of AI & Defense Drivers

TTM Technologies is rated Buy, balancing AI-driven growth with a strong defense sector moat and production expertise. TTMI's high security clearance and status as a trusted defense supplier underpin a durable competitive advantage, especially in aerospace and unmanned AI applications.

Capex expansion above $300M/year targets higher-margin, complex PCB production, with EBIT margins expected to rise from 10% toward 16% long-term. Valuation is supported by growth and rising ROIC; risks include potential AI data center slowdown and supply chain/geopolitical pressures.