3 Growth Stocks Facing Higher Rate Pressure In US Tech
A soft September jobs report and a patient Federal Reserve have put interest rates back at the center of every growth investor’s screen. Cooling labor data, higher-for-longer rate expectations, and shifting odds for future hikes are already rippling through large and mid-cap tech and communication services stocks that depend heavily on financing conditions. This article spotlights three companies from that rate-sensitive growth screener that could be especially exposed to this new macro backdrop.
The three stocks highlighted below are only a sample of this theme, while the full screen surfaced 32 more U.S. tech and communication services growth stories with equally compelling rate-sensitive narratives that are not covered here. To identify and analyze the highest-conviction ideas from this wider universe, head straight into the U.S. Interest-Rate-Sensitive Growth Stocks (Large & Mid-Cap Tech and Communication Services) screener.
Sanmina (SANM)
Overview: Sanmina is a global contract manufacturer that designs, builds, and services complex electronic hardware and components for leading technology and industrial customers.
Operations: Sanmina generates about US$11.0b from Integrated Manufacturing Solutions and US$1.9b from Components, Products and Services across the Americas, APAC and EMEA.
Market Cap: US$12.3b
Sanmina matters in this rate-sensitive growth screen because its capital-heavy electronics manufacturing model ties financing costs directly to tech hardware demand and earnings power.
"Sanmina is expanding vertical integration in areas such as metal fabrication for AI racks, high technology PCBs, transformers and liquid cooling and test capabilities."
What happens when one unseen pressure on that expansion shifts will go a long way to deciding how durable future margins look.
That pressure point is exactly where the story gets interesting, and the full narrative for Sanmina unpacks how Sanmina’s vertical integration plans could accelerate or stall as rates bite.
Applied Digital (APLD)
Overview: Applied Digital builds and runs high-performance computing and AI-focused data centers, and its growth prospects are closely linked to financing conditions.
Operations: Applied Digital currently generates about US$385 million from its HPC Hosting segment and US$154 million from Data Center Hosting.
Market Cap: US$7.4b
Applied Digital fits this interest-rate-sensitive growth screen because its AI and HPC buildout relies on heavy upfront capital. Any shift in borrowing costs or discount rates can quickly affect how investors value those long-dated cash flows.
"Long-term (15-year) leasing agreements with CoreWeave, a major AI hyperscaler, for its purpose-built AI/HPC data center campus, Polaris Forge 1, represent a total of $7 billion in contracted revenue and a multi-year, recurring, and predictable revenue stream that directly supports future revenue growth and cash flow stability."
The key variable is how one large, capital-intensive growth plan interacts with tighter or looser funding conditions over the next few years.
How that funding equation evolves is exactly what the full narrative for Applied Digital tackles, separating hype from contracted cash flows and where Applied Digital’s risk could be masking upside.
Globalstar (GSAT)
Overview: Globalstar provides mobile satellite connectivity and IoT tracking services worldwide, linking remote people, assets, and critical operations to its network.
Operations: Globalstar currently generates about US$281 million from its Mobile Satellite Services business, reflecting its focus on connectivity and data solutions.
Market Cap: US$10.8b
Globalstar fits the rate-sensitive growth theme because it is pouring capital into next-generation satellite infrastructure today, while investors focus on tomorrow’s cash flows.
"Despite progressing with large-scale ground and satellite infrastructure upgrades to support the next-generation Extended MSS Network and improve resiliency, the heavy capital expenditure required for these projects could pressure free cash flow and hamper net margin improvements, especially if subsequent subscriber or usage growth falls short of expectations."
What happens if one assumption about how quickly new capacity fills shapes whether Globalstar’s higher-rate funding translates into stronger long-term returns.
If that assumption is wrong in either direction, the full narrative for Globalstar shows how Globalstar’s capex, contracts, and rate sensitivity could be quietly accelerating long-term equity potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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