Amphenol Soars 42% To 52-Week High Riding AI Wave

As Amphenol Corp (NYSE:APH) trades near its 52-week high, the company finds itself at a pivotal moment in an ever-evolving tech landscape. With a 42% surge in stock value this year, outpacing the broader S&P 500 Information Technology Sector Index, Amphenol’s recent fiscal first-quarter results reveal robust demand for its advanced interconnect solutions, particularly in burgeoning markets such as IT datacom and mobile devices.

Amphenol designs, manufactures, and markets advanced interconnect, sensor, and antenna solutions worldwide. The company offers a range of products, including electrical, electronic, and fiber optic connectors, antennas, sensors, and specialty cables, for automotive, aerospace, communications, and industrial applications.

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On April 23, Amphenol reported fiscal first-quarter 2025 sales growth of 48% year-over-year to $4.81 billion, surpassing the analyst consensus estimate of $4.23 billion and the company’s estimate of $4.00 billion to $4.10 billion. On Jan. 22, the company reported fourth-quarter topline growth of 30% Y/Y to $4.32 billion, topping the analyst consensus estimate of $4.07 billion. 

Organic growth in the IT datacom market and robust organic growth in the mobile devices, defense, and communications networks markets, together with contributions from the company’s acquisition program, drove the topline growth. The adjusted operating margin for the quarter reached a record 21.3%, up from 21.0% in the same quarter last year.

Amphenol expects second-quarter sales to be between $4.90 billion and $5.00 billion. This represents a 36%-39% increase over the prior-year quarter, and the street view pegs expectations at $4.58 billion.

On March 17, JPMorgan analyst Samik Chatterjee flagged Amphenol as one of the companies poised to benefit from Nvidia Corp’s (NASDAQ:NVDA) Blackwell Ultra ramp. While the adoption of optics remains a concern, analysts expect copper to continue dominating in-rack connectivity—a positive sign for Amphenol. Amphenol, with its intense exposure to passive copper, along with Coherent (NYSE:COHR), Fabrinet (NYSE:FN), and Lumentum Holdings (NASDAQ:LITE), is likely to draw attention as the AI wave builds, according to the analyst.

Nineteen analysts have set a consensus price target of $92.50 for Amphenol. Recent ratings from Goldman Sachs, Evercore ISI Group, and UBS average a target of $104.33, indicating a potential upside of 5.55% for the stock.

Price Action: APH stock is down 0.23% to $98.32 during early trading on Tuesday.

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