Flex CEO Revathi Advaithi discusses the company's plan to spin off its cloud and power infrastructure segment into an independent publicly traded company on ‘The Claman Countdown.’ #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #flex #flexceo #revathiadvaithi #advaithi #business #stocks #shareholders #shareholdervalue #spinoff #cloud #powerinfrastructure #publiccompany #investing #markets #economy #wallstreet #corporate #finance
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What Revathi Advaithi said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Revathi Advaithi, CEO of Flex, discussed the company's decision to spin off its cloud and power infrastructure segment into a separate publicly traded company. She explained that over the past seven years, Flex built a compute, cooling, and power business, which became highly valuable as AI infrastructure spending surged. The spinco will focus on high-growth power technology, while Flex will remain a $21 billion company in healthcare and industrial sectors. Advaithi cited her prior experience spinning off NextTracker, now worth $18 billion. She projected the spinco's revenue to grow 70% this year and 80% next year, driven by hyperscalers and utility demand. She emphasized the shift from labor arbitrage to resilience in manufacturing, benefiting from tariffs and reshoring. The spinco's name will be announced in September. Advaithi sees both companies as well-positioned for growth.
Key takeaways
Spinco revenue expected to grow 70% this year and 80% next year, driven by hyperscalers and utility demand.
Flex will remain a $21 billion company focused on healthcare and industrial businesses after the spin-off.
Spinco name to be announced in September, with Advaithi returning to reveal it.
Advaithi previously spun off NextTracker, now valued at $18 billion, demonstrating her experience.
Tariffs and reshoring have shifted manufacturing to North America and Europe, benefiting Flex.
0:05You are spinning off what will be—they go as they are, what was at heart of our move to let it fly on its own?
3:05Looking at the customer base of the spinco, does it have a name?
3:28I know that we had $6.6 billion last time, what are you expecting it to reach?
7:20Well, I want to just quickly ask you, you are a huge global—I have been covering you since you turned out TiVo boxes in Mexico, you are everywhere. Any tariff implications?
Fox Business Alert: OpenAI and Broadcom are injecting heat into the custom chip market with the debut of OpenAI's first-ever AI inference chip, dubbed Jalapeño. With Broadcom silicon, you know, reveal is not doing much for the stock. Maybe the market conditioning. Jalapeño chip is an AI processor to train large language models, ChatGPT, to perform tasks and solve problems. Broadcom makes silicon for Jalapeño, they get manufacturing and cooling technology from Flex. A global contract manufacturing company, formerly known as Flextronics. You want to see a big move? Quarter to date, Flex up 126%. This week, Flex snagged a prime listing location, began trading on S&P 500. It comes as Flex making a big flex in AI world, spinning off cloud and power infrastructure segment to a separate publicly traded company that will be led by current Flex CEO, who is joining me now in a knock exclusive. You are spinning off what will be—they go as they are, what was at heart of our move to let it fly on its own?
Liz, we're in a position. In last seven years, we were remaking Flex to be able to build a compute, cooling, power business within Flex. It came at a time much before the whole ChatGPT moment, when people were not thinking about power intensity. And when that happened, the infrastructure spend skyrockets and we put all our money, cap allocation, toward this. It had the best returns. If you look at Flex today, we have two very distinct businesses that can stand alone on its own. The spinco will be high growth, and a lot of spending in technology and power. And Flex has a lot of opportunity to be a $21 billion company investing in healthcare and industrial businesses. We have the opportunity to create tremendous shareholder value with both companies with different management teams and different focus and attention. I have done this before. I spun off a business called NextTracker that is $18 billion today. We have done this well, created the right focus for the right business to drive and succeed.
Better that be initiative than some activist investor coming in saying why you are not spinning off that division. You get props from Wall Street for jumping ahead of that. Looking at the customer base of the spinco, does it have a name?
Advaithi, R. (2026, June 24). Spin-off creates opportunity for ‘TREMENDOUS shareholder value’: Flex CEO [Interview transcript]. Fox Business. CEOInterviews.AI. https://ceointerviews.ai/interview/1037521/
MLA
Revathi Advaithi. "Spin-off creates opportunity for ‘TREMENDOUS shareholder value’: Flex CEO." Fox Business, 24 Jun. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1037521/.
BibTeX
@misc{advaithi2026_1037521,
author = {Revathi Advaithi},
title = {Spin-off creates opportunity for ‘TREMENDOUS shareholder value’: Flex CEO},
howpublished = {Interview transcript, Fox Business. CEOInterviews.AI},
year = {2026},
month = {jun},
url = {https://ceointerviews.ai/interview/1037521/},
note = {Speaker-attributed transcript with timestamps}
}
