Flex Unveils Axiom As Its AI Infrastructure Spin-Off

Flex Ltd. (NASDAQ:FLEX) on Tuesday unveiled Axiom Solutions International Inc. as the name of its planned independent cloud and power infrastructure company. The move advances Flex’s plan to separate the fast-growing business into a standalone public company.

Axiom Targets AI Infrastructure Demand

Flex also filed a preliminary Form 10 registration statement with the U.S. Securities and Exchange Commission. Following the planned spin-off, Axiom is expected to trade on the Nasdaq under the ticker AXM.

Axiom will combine power, thermal management and computing systems. The business aims to address growing infrastructure demands from artificial intelligence and data centers.

Flex expects to complete the separation in the first quarter of 2027. However, the transaction remains subject to several conditions. These include final board approval, effectiveness of the Form 10, shareholder approval and Singapore High Court approval.

Flex Names Post-Separation CFO

Separately, Flex said Amy B. Schwetz will join the company on Oct. 5 as chief financial officer of its Regulated Manufacturing Services and Integrated Technology Services segments. She is expected to become Flex CFO after the separation.

Schwetz has more than 25 years of finance and accounting experience. She previously served as CFO of Flowserve Corp. and Peabody Energy Corp.

Flex also outlined the expected boards of both companies. The appointments include George R. Oliver and Brian Yoor at Flex, as well as Mark Eubanks and David Johnson at Axiom.

Stock Performance And Technical Analysis

Flex stock is trading slightly lower Tuesday as risk appetite remains weak across equities. The Nasdaq is down 0.53%, while the S&P 500 has shed 0.48%. Technology stocks are also modestly lower.

The stock is also in a technically sensitive area after pulling back from recent highs. That could put nearby support levels in focus if market weakness continues.

It remains in a longer-term uptrend despite its recent pullback. The stock is 11.9% above its 200-day simple moving average. However, it is 2.5% below its 20-day SMA and 8.9% below its 50-day SMA.

The 20-day SMA is below the 50-day SMA, signaling near-term weakness. However, the 50-day SMA remains above the 200-day SMA. That keeps the longer-term trend constructive.

Momentum may also be improving. The MACD is above its signal line, while the histogram is positive. That suggests selling pressure is easing.

Key resistance sits near $116, followed by the 50-day SMA at $118.43. Support is near $105. A break below that level could put the 200-day SMA in focus.

FLEX Price Action: Flex shares were down 0.13% at $108.18 at the time of publication Tuesday, according to Benzinga Pro data.

Photo via Shutterstock