TTM Technologies Stock Plunges 28% as Soft Fourth-Quarter Forecast Overshadows Record AI-Driven Sales Surge

Shares of TTM Technologies Inc. plunged more than 27% on Thursday, as a fourth-quarter revenue forecast that fell slightly short of Wall Street expectations overshadowed record quarterly results driven by booming demand from artificial intelligence data centers.

TTM shares fell $28.20, or 27.61%, to $73.95 in midday trading, cutting the company's market value to about $7.8 billion. Trading volume topped 10.4 million shares, nearly four times the stock's three-month average.

The sell-off erased a large portion of the stock's gains this year, although shares remained up about 75% over the past 12 months.

Record quarter

TTM, a maker of printed circuit boards and other electronic components used in data centers, aerospace and defense systems, reported third-quarter net sales of $1.2 billion, up 60% from $752.7 million a year earlier and a company record.

Adjusted earnings were $1.46 per diluted share, more than double the 67 cents a year earlier and well above the average analyst estimate of $1.26. Revenue also beat expectations of about $1.13 billion.

On a GAAP basis, net income rose to $84.8 million, or 79 cents per share, from $53.1 million, or 50 cents per share.

"Once again, we delivered quarterly records for both net sales and non-GAAP EPS," said Chief Executive Edwin Roks. "All key markets contributed to our 60% year on year growth."

AI demand drives growth

The company's data center and networking business was the standout. Sales in that market more than doubled, rising 115% from a year earlier, and accounted for 41% of total revenue, fueled by continued spending on AI infrastructure.

Sales to medical, industrial and instrumentation customers nearly doubled, up 97%. Aerospace and defense sales rose 21% to $416.5 million, and the company's defense program backlog stood at $2 billion.

Adjusted earnings before interest, taxes, depreciation and amortization reached $242.3 million, or 20.1% of sales, up from 16.1% a year earlier.

Guidance disappoints

Despite the strong quarter, investors focused on the company's outlook.

TTM forecast fourth-quarter sales of $1.42 billion to $1.44 billion. The midpoint of that range, $1.43 billion, was slightly below the analyst consensus of $1.44 billion. The company's forecast for adjusted earnings of $1.77 to $1.83 per share was in line with expectations at the midpoint.

The company also issued a preliminary outlook for 2027, projecting net sales of $6.5 billion to $6.75 billion and adjusted earnings of $8.10 to $8.90 per share. Its full-year 2026 outlook calls for sales of $4.47 billion to $4.49 billion.

The fourth-quarter guidance includes recently completed acquisitions but excludes the pending $650 million purchase of Ophir Optics.

High expectations

The steep drop reflects how high expectations had become for companies tied to the AI boom. After a strong rally over the past year, even a modest shortfall against forecasts was enough to trigger heavy selling.

The decline also came during a broader sell-off in technology stocks on Thursday, as investors grew more cautious about the costs and payoff of AI investments following earnings from major technology companies. The Nasdaq Composite fell more than 1% in morning trading, with technology the worst-performing sector in the S&P 500.

"The thing that makes these AI names more vulnerable is just that they have such high valuations already," said Brendon Dashiell, a portfolio manager at Bogart Wealth, speaking about the broader market.

Before Thursday, TTM shares traded at about 43 times trailing earnings, a premium valuation that left little room for disappointment.

What's next

Investors will watch whether TTM can meet its fourth-quarter targets and deliver on its ambitious 2027 forecast, which implies continued rapid growth driven by AI data center demand.

The company's ability to complete and integrate its acquisitions, along with spending trends among major cloud computing companies, are likely to be key factors for the stock in the months ahead.