Hyve Solutions designs and deploys hyperscale digital infrastructures. It collaborates with customers to create and deliver server, storage, and networking solutions tailored for data centers worldwide, guiding projects from initial design to full implementation. The company relies on deep industry experience and strong vendor partnerships to build purpose-built systems that meet current and future data-center needs. As a wholly owned subsidiary of TD SYNNEX, it leverages scale and procurement strength to support large deployments. Compared with competitors, Hyve differentiates itself through end-to-end, design-to-deployment capabilities, a focused hyperscale approach, and a broad partner ecosystem that enables customized, scalable infrastructure.
Company Size
1,001-5,000
Company Stage
N/A
Total Funding
N/A
Headquarters
Fremont, California
Founded
1980
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TD Synnex crushed earnings estimates and Wall Street sold the stock anyway. TD Synnex posted record Q3 FY2026 results on September 24, with EPS and revenue both crushing estimates, yet shares fell about 9% to 12% as investors focused on nearly $1 billion in negative free cash flow tied to its fast-growing Hyve server business. Gross margin also contracted as AI server programs proved less profitable than the company's traditional distribution business. TD Synnex just posted the best quarter in its history and investors punished it by almost 10%. The reason is buried in the cash flow statement, not the income statement. TD Synnex reported non-GAAP earnings of $5.68 a share on September 24, blowing past the $4.64 Wall Street expected, on revenue of $21.6 billion against a $18.79 billion forecast. Gross billings, the distributor's preferred scale metric, jumped 40% to $31.8 billion for the quarter ended August 31. Shares fell anyway, dropping roughly 9% to around $260 from Wednesday's close of $287.89, according to TradingKey. By some intraday counts the decline ran closer to 12%. You don't usually see a stock get sold off on a quarter like that. Non-GAAP operating income climbed to $736 million. The dividend went up 9%. Every headline number beat. So what spooked investors enough to knock nearly $30 off the share price in a single session? The answer is Hyve Solutions, TD Synnex's server manufacturing arm, and the cash it's eating to keep growing. Hyve's non-GAAP gross billings more than doubled, up 117% year over year to $7 billion, and segment revenue climbed 52% to $3.8 billion. That's the AI server boom showing up exactly where you'd expect: hyperscalers and cloud buyers ordering racks faster than almost anyone can build them. But TD Synnex isn't the company designing the chips or selling the cloud capacity. It's the one in the middle, buying components, building servers to spec, and waiting to get paid. Free cash flow came in negative $975.6 million for the quarter, according to figures reported by Simply Wall St and echoed across multiple outlets covering the earnings call. Management pinned roughly $1 billion of that consumption directly on Hyve: higher inventory levels and working capital tied up ramping new customer programs. CFO David Jordan told analysts on the call that a significant portion of that working capital investment is now in place, and that he expects the Hyve programs to turn cash generative from here. Western Digital beat every Wall Street estimate on August 5, then watched its stock fall 16% in two days anyway. Six weeks later the slide has continued, driven by a convertible-notes redemption and broader AI-storage jitters, leaving shares down nearly 45% from their 2026 high even as the company's AI demand story hasn't changed. - why did Western Digital stock crash after earnings - stock market valuation crisis Western Digital earnings miss That's the bet investors are being asked to make. Trust that the cash comes back. Here's the part that should worry anyone watching the AI infrastructure trade more broadly: gross margin actually contracted. TD Synnex's overall gross margin fell to 6.61%, down 61 basis points from 7.22% a year earlier. Hyve's own non-GAAP operating margin dropped to 3.61% from 5.04%. The business grew massively and got less profitable per dollar of revenue doing it, because large AI server programs simply carry thinner margins than the distributor's traditional IT reselling business. Frankly, that's the ugly math nobody wants to say out loud about the AI buildout. Somebody has to finance the gap between when a distributor buys GPUs and racks and components, and when the hyperscaler customer actually pays for the finished server. TD Synnex is fronting that gap at scale, and the market just put a price on how much that's worth: not much, apparently, when the working capital bill comes due in the same quarter. Morgan Stanley analyst Erik Woodring had cut his price target on the stock from $374 to $334 on September 15, ahead of the print, while keeping an Overweight rating; after the results, he raised it again to $359. Barclays' Huy Hardwick, by contrast, had already nudged his target up from $278 to $287 on September 8. The split reflects the same tension playing out in the stock price now: strong demand, weak cash conversion. TD Synnex isn't alone in this position. Every distributor and contract manufacturer sitting between chipmakers and hyperscalers faces the same working-capital squeeze as AI server orders scale up faster than payment terms catch up. The difference is that TD Synnex just showed investors, in one earnings report, exactly what that squeeze costs. Non-GAAP EPS beat by a dollar. The stock still dropped double digits in percentage terms. For the fiscal fourth quarter, TD Synnex guided to revenue of $21.8 billion to $22.6 billion and EPS of $5.65 to $6.15, a range that assumes Hyve's cash drag eases. Whether it does is now the only number that matters, and it won't show up until the next earnings call. Tungsten has surged 557% since China's February 2025 export controls, and the squeeze has now hit Kennametal, whose operating cash flow turned negative $4 million even as profits set records. With zero U.S. mine production and a January 2027 defense procurement deadline looming, the metal squeeze shows no near-term fix. - tungsten price surge impact on industrial suppliers - how negative cash flow with record profits happens Join the discussion. No replies yet. Start the discussion. Dave Barr is a professional Marketing Strategist With Over 6 Years Of Experience in PR. His primary area of expertise is public relations and social branding. Dave has been associated with various content projects from across the world on a regular basis. He has also had associations with big and reputed news networks. Dave contributes to Startup Fortune in the Business, Marketing and Technology sections.
Hyve Solutions set to bring nearly 250 jobs and $209M economic impact to North Las Vegas. The server and storage systems manufacturer plans to open a facility in the Apex area, paying an average of $38 an hour. Posted 8:17 PM, Aug 21, 2026 NORTH LAS VEGAS (KTNV) - A manufacturing company is set to open a facility in North Las Vegas, bringing nearly 250 jobs and a projected $209 million economic impact to the city. Hyve Solutions, which makes servers and storage systems for businesses, plans to open a location in the Apex area of North Las Vegas. The company is already recruiting for positions. Clarissa Castillo, chief strategy and performance officer for the Las Vegas Global Economic Alliance, said the region is well-positioned for the investment. WATCH | Hyve Solutions to bring hundreds of jobs to North Las Vegas "It is a very business-friendly environment," Castillo said. The jobs are expected to pay an average of $38 an hour and are open to a wide range of applicants. "These are opportunities across a variety of skill levels and backgrounds," Castillo said. A groundbreaking has not yet been scheduled, but Castillo said the project is moving forward. "Groundbreaking is still pending, but things are getting started and moving fairly quickly here in Southern Nevada," Castillo said. Hyve Solutions will also open a site in Reno. Together, the two Nevada locations could bring close to 3,000 jobs statewide. Castillo said the North Las Vegas site alone is projected to generate significant financial returns for the region. "About 3.2 million dollars in fiscal impact, which is incredible for our region, and overall 29 million in spending impact," Castillo said. As part of the deal, Hyve Solutions pledged to support workforce development through a partnership with the College of Southern Nevada. "They can work with the College of Southern Nevada to create customized programs for their employees to scale up and earn certifications for other roles," Castillo said. North Las Vegas resident Terrance Henderson said he welcomes the news. "I could use one, so I am looking forward to it," Henderson said. Another local resident echoed that sentiment. "Anything that improves our economy is great!" they said. This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Its editorial team verifies all reporting on all platforms for fairness and accuracy. Have a question? Reach out to Jhovani Carrillo! Submit your question or news tip for Channel 13 North Las Vegas reporter Jhovani Carrillo
Hyve Solutions chooses Nevada for dual AI Server Manufacturing Campuses - unite.ai. Hyve Solutions expands AI Server Manufacturing with two new campuses in Nevada. Hyve Solutions, the server design and manufacturing division of TD SYNNEX, announced on August 19, 2026, the establishment of two cutting-edge manufacturing campuses in Nevada. The sites, located in Reno and North Las Vegas, will significantly boost U.S. production of compute, storage, and networking systems essential for AI data centers. Together, these facilities are projected to generate approximately 3,000 new jobs. Strategic site selection and Economic Development. This announcement follows the Nevada Governor's Office of Economic Development's approval of tax abatements for both projects during their board meeting on August 5, 2026. This milestone marks the conclusion of a comprehensive site-selection process in collaboration with state and regional development agencies. Operating out of Fremont, California, Hyve specializes in designing and manufacturing customized rack-scale systems for major cloud providers, essentially crafting the hardware that underpins AI infrastructure. Features of the new campuses. The Reno campus, measuring approximately 624,000 square feet, will serve as Hyve's flagship facility in Nevada and expand the company's domestic surface-mount technology (SMT) capabilities. This advanced manufacturing process places chips and components onto printed circuit boards before transforming them into servers - a critical step in electronics manufacturing traditionally centered in Asia. Importantly, Hyve's expansion is focused on enhancing its existing U.S. SMT footprint rather than relocating operations. Meanwhile, the North Las Vegas facility will enhance Hyve's manufacturing capacity in Southern Nevada, with job openings across various fields including production, engineering, quality assurance, supply chain, and operations. The roles offered will comprise a blend of hourly and salaried positions, and compensation will exceed the state's average wage, along with medical, vision, and dental benefits. Commitment to local workforce and development. "Nevada provides us with ample space, a skilled workforce, and a favorable business climate to scale our manufacturing capabilities," stated Jerry Kagele, President of Hyve Solutions, in the company's announcement. "By expanding our advanced manufacturing capacity here in the United States, we are committed to creating long-term careers." Hiring initiatives are already in motion, with the company tapping into Nevada's available workforce and academic talent pool. Interested candidates can view open positions on Hyve's careers portal, which includes a dedicated hiring page for Las Vegas that lists vacancies for manufacturing managers, operations leaders, and technical contributors. State support and economic impact. The GOED board's approvals on August 5, 2026 outline significant tax incentives for the projects. For the Reno facility, the state granted $3,672,117 in tax abatements, anticipating the creation of 974 jobs at an average hourly wage of $32.10 within two years. Additionally, projected capital equipment investments amount to $31,420,000, leading to an estimated $59,334,238 in new tax revenue during the abatement period. The North Las Vegas facility received $1,030,430 in abatements with plans for 240 jobs at an average wage of $38.55, expecting $8,702,285 in capital investments and $19,448,537 in new taxes. The City of North Las Vegas expects these 240 jobs to generate $19.5 million in state and local tax revenue over 10 years, with Mayor Pamela Goynes-Brown emphasizing Hyve's alignment with the city's economic goals and its commitment to workforce development through local partnerships. The growth of Server Manufacturing driven by AI demand. As an original design manufacturer, Hyve plays a vital role in the AI hardware landscape by designing, integrating, and producing servers, storage solutions, and networking platforms for hyperscalers and large enterprises. With partnerships including industry leaders like NVIDIA, AMD, and Intel, Hyve operates as a single accountable partner, seamlessly managing design through to scalability. The recent expansion is driven by "increased customer demand" for advanced AI, cloud, and digital infrastructure systems, and both Nevada facilities are poised to become high-tech job creators. Hyve's move to locate in Nevada echoes a trend where manufacturing and assembly facilities are being drawn to areas with accessible land, available power, and a skilled workforce, aided by proactive state incentives. As demonstrated by the GOED's support for Hyve, Nevada continues to attract a variety of data center and hardware commitments, enhancing its appeal for tech companies. Looking ahead: what's next for Hyve. The immediate focus for Hyve will be operational milestones over the next couple of years, particularly meeting job creation and capital equipment benchmarks as part of the abatement agreements - 974 jobs and $31.4 million in equipment investments in Reno, and 240 jobs and $8.7 million in North Las Vegas. With hiring already in progress, the expansion of SMT capacity in Reno aims to enhance the domestic production capabilities of the Fremont-headquartered firm. As cloud providers eagerly await the deployment of these systems, the urgency lies in ensuring that populated boards swiftly come off production lines. Here are five FAQs based on the article "Hyve Solutions Picks Nevada for Two AI Server Manufacturing Campuses": FAQ 1: Why did Hyve Solutions choose Nevada for its AI server manufacturing campuses? Answer: Hyve Solutions selected Nevada due to its strategic location, favorable business environment, and access to skilled labor. The state's developing technology infrastructure also supports the growth of AI and server manufacturing. FAQ 2: What is the purpose of the new campuses? Answer: The new campuses are designed to enhance Hyve Solutions' production capabilities for AI servers, enabling faster response times to customer demands and supporting the increasing need for AI technologies across various industries. FAQ 3: How many campuses will Hyve Solutions build in Nevada? Answer: Hyve Solutions plans to establish two manufacturing campuses in Nevada, which will significantly expand their operational footprint and production capacity in the region. FAQ 4: What potential benefits does this expansion bring to the local economy? Answer: The expansion is expected to create numerous jobs, stimulate economic growth, and attract additional tech companies to the area. The investment in AI server manufacturing is likely to enhance the local technology ecosystem. FAQ 5: When is the expected timeline for the completion of the campuses? Answer: While the exact timeline for completion has not been disclosed, Hyve Solutions aims to initiate operations as soon as possible to meet the burgeoning demand for AI server solutions. Further updates will be provided as the project progresses. No comment yet, add your voice below! Book your free discovery call.
Hyve Solutions Corporation, a US-based manufacturer of compute, storage and networking systems for AI and cloud infrastructure, will establish two advanced manufacturing campuses in Nevada. The facilities, located in Reno and North Las Vegas, are expected to create approximately 3,000 jobs. The Reno campus will occupy roughly 624,000 square feet and serve as Hyve's flagship location in the state. Open positions will span production, engineering, quality, supply chain, warehouse and operations roles, offering both hourly and salaried opportunities. Compensation includes wages above Nevada's statewide average of $32.86, along with medical, vision and dental benefits. Hyve Solutions is a wholly owned subsidiary of TD SYNNEX Corporation. The company selected Nevada for its workforce, business climate and capacity to support large-scale manufacturing expansion.
Nevada GOED approves $17 million in tax abatements. Staff Report The Nevada Governor's Office of Economic Development has approved $17,633,378 in tax abatements. In return, these companies are projected to create 2,159 jobs in the next five years at an average hourly wage of $34.85. Additionally, these companies will generate $174,238,050 in new tax revenues over each abatement period and generate $152,991,437 in total capital equipment investment to the state. Companies receiving abatements are in Clark, Washoe, Storey, and Lyon counties: - ALPLA, Inc. plans to establish a plastic bottle manufacturing facility in Clark County. It was approved for $818,718 in abatements and is expected to create 51 jobs at an average hourly wage of $34.92 within two years. - Buckeye Corrugated, Inc., plans to establish and expand its advanced corrugated packaging manufacturing operations in Northern Nevada. It was approved for $1,572,144 in abatements and is expected to create 27 jobs at an average hourly wage of $40.06 within two years. - Western Steel Service Center, LLC plans to establish a new steel processing and fabrication facility in Fernley. It was approved for $542,407 in abatements and is expected to create 10 jobs at an average hourly wage of $35.59 within two years. - Hyve Solutions Corp., plans to establish a new high-tech manufacturing facility in Reno. It was approved for $3,672,117 in abatements and is expected to create 974 jobs at an average hourly wage of $32.10 within two years. - Hyve Solutions Corp., also plans to establish a new high-tech manufacturing facility in North Las Vegas. It was approved for $1,030,430 in abatements and is expected to create 240 jobs at an average hourly wage of $38.55 within two years. - Nimble Precision, Inc. was approved for $4,677,521 in abatements and is expected to create 65 jobs at an average hourly wage of $46.31 within two years. - Colovore Reno 1, LLC is planning to establish a data center facility in Storey County. It was approved for $4,076,970 in abatements and is expected to create 10 jobs at an average hourly wage of $59 within five years. - Rapid Response Monitoring Services, Inc. plans on expanding its existing Henderson facility. It was approved for $147,837 in abatements and is expected to create 75 jobs at an average hourly wage of $29.96 within two years. - Greif Packaging, LLC plans to establish a manufacturing facility in Reno. It was approved for $664,476 in abatements and is expected to create 23 jobs at an average hourly wage of $32.54 within two years. - Type III, Inc. plans to establish manufacturing, assembly, engineering services in Reno. It was approved for $430,758 in abatements and is expected to create 26 jobs at an average hourly wage of $57.31 within two years.