Amphenol (APH) Makes Connectors For Datacenters, Spacecraft, EVs, & Robots

Stock (Symbol)

Amphenol (APH)

Stock Price

$84

Sector

Data is as of

Expected to Report

Company Description

Amphenol Corporation is a designer, manufacturer, and marketer of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cables.

The Company operates through three segments:

The Harsh Environment Solutions segment designs, manufactures and markets a range of ruggedized interconnect products and other products for use in the industrial, defense, commercial aerospace, automotive, mobile networks, medical and other markets.

Communications Solutions segment designs, manufactures and markets a range of connector and interconnect systems for use in the information technology and data communications, mobile devices, industrial, mobile networks, broadband communications, automotive, commercial aerospace and defense end markets.

Its Interconnect and Sensor Systems segment designs, manufactures and markets a range of sensors, sensor-based systems, connectors and value-add interconnect systems. Source: Refinitiv

Sharek’s Take

Founded in 1925 in New York State, Amphenol is a leader in military, aerospace, and networking connector manufacturer with operations in 40 countries worldwide. Originally, the company specialized in magnetos for aviation. A magneto is an electrical generator that uses magnets to produce electric current for airplanes. Eventually, engineers then developed ignition systems for lawnmowers, washing machines, and the largest aircraft engines. In the 1950s, the company branched out into electrical connectors. Amphenol is now working on next-generation AI data center architectures, including optical networking and co-packed optics (CPO). CPOs are newer technologies designed to move AI data faster with lower power usage. This is a play on space exploration. Its products are used in satellites, ground stations, unmanned vehicles, space stations & space robots. Amphenol makes ruggedized products offering dust, vibration and corrosion resistance extreme weather resistant.

The company grows both organically and via acquisitions. APH recently acquired:

• Rochester Sensors is a leading maker of specialized liquid-level sensors for industrial markets. Rochester Sensors strengthens Amphenol’s offerings in areas like propane, heavy vehicles, and refrigeration.
• Trexon is a top provider of high reliability interconnect and cable solutions for the defense market. Trexon will bring new technologies and open opportunities in space, naval, communications, and ground vehicle applications.
• CommScope, which has significant fiber optic connect capabilities in the IT datacom market.
• El.com, a maker of interconnect products and high-voltage cable assemblies for the industrial, defense, and aerospace markets.
• Empire Electronics makes electrical components that connect different parts of a vehicle. It strengthens Amphenol’s automotive business, particularly in vehicle lighting.
• AdvancedPCB makes specialized circuit boards used in defense equipment and industrial machinery. It expands Amphenol’s ability to supply the electronic components used in these industries.
• Dexgreen makes fiber-optic products that help carry internet and data connections. It strengthens Amphenol’s presence in the European broadband and communications market.
• Humanetics Sensors makes sensors that measure things like force and pressure, along with other specialized sensing products. It expands Amphenol’s sensor business across aerospace, defense and industrial markets.

Amphenol has three operating segments:

• Communications Solutions: 
  • Connectors and interconnect systems including high-speed, ratio frequency, power, fiber optic products, coaxial and high-speed cable, and antennas.
  • 64% of company revenue last qtr, 99% revenue growth year-over-year.
• Harsh Environment Solutions:
  • Connectors and interconnect systems, specialty cable, printed circuits.
  • 20% of total company revenue last qtr, 35% revenue growth.
• Interconnect and Sensor Systems:
  • Sensors, sensor based systems, connectors and value-add interconnect systems.
  • 16% of company revenue last qtr, 17% revenue growth.

End markets include (with last qtr’s stats):

• IT and Data Communications (48% of total revenue, sales increased 117% year over year).
• Industrial (18% of total revenue, sales increased 60% year over year).
• Communications Network (8% of total revenue, sales increased 25% year over year).
• Automotive (10% of total revenue, sales increased 13% year over year).
• Defense (8% of total revenue, sales increased 42% year over year).
• Mobile Devices (5% of total revenue, sales increased 31% year over year).
• Commercial Aerospace (3% of total revenue, sales increased 23% year over year).

APH is a safe stock that’s recorded record profits (EPS) in 21 of the past 23 years (except 2009 and 2019). Dividends have grown each year since 2011. The stock has an Estimated Long Term Growth Rate of 28% per year and the dividend yield is 1%. In 2025, management spent $1.5 billion on stock buybacks and dividends. Amphenol is in a sweet spot right now as datacenters, rockets, and robots are rapidly growing industries. And with a P/E of just 23, I think the stock is a bargain. APH is part of the Conservative Growth Portfolio, Growth Portfolio, and Focus List.

One Year Chart

APH stock has been super strong during this recent AI datacenter stock meltdown. From the looks of this chart you can’t even tell that others in the segment have had their stocks fall ~50% the past few months. Credo stock is down from ~$275 to $135 the past few months

The P/E is 23, down from 31 last qtr. APH’s P/E was 35 four quarters ago. I feel the P/E can get up to 37. Note, I’m using 2027 annual profit estimates to calculate the P/E in this chart as we are in the company’s Fiscal Q4 now.

The Estimated Long-Term Growth Rate (Est. LTG) is 28%, up from 26% last qtr. Still, profits are growing around 70% right now.

Qtrly profit growth has been excellent and that’s expected to continue.

Earnings Table

Last qtr, APH reported 72% profit growth and whipped analyst estimates of 48%. Revenue increased by 65% versus estimates of 49%. Operating Margin was 29.7%, up from 27.5% a year ago. Here are some highlights from the Earnings Call:

• Organic sales grew 37% year-over-year, driven by strong growth of more than 20% in five of its seven end markets.
• Orders grew 99% year over year.
• The increase in margins was due to significantly higher sales volumes.
• IT datacom business was driven by continued acceleration in demand for APH’s products used in artificial intelligence applications, together with continued strong demand in its base IT datacom business. AI-related applications now account for approximately 75% of IT datacom sales.

Annual Profit Estimates have been trending higher. All green in this Earnings Table!

Quarterly profit Estimates are 69%, 49%, 32%, and 21% for the next 4 qtrs. Quarterly estimates increased by a good amount. Analysts think revenue will grow a solid 62% next quarter.

Fair Value

At $84 a share, APH has a P/E of 30 when we look at 2026 profit estimates.

My Fair Value is a P/E of 37, and when we plug in 2027 profit estimates that would be a $133 stock, 59% higher than the recent quote.

2028 Fair Value sits at $155 a share, giving the stock upside of 86% in my opinion.

Bottom Line

Amphenol (APH) has a beautiful ten-year chart.

Amphenol is riding the revolutions in AI, space exploration, and robotics. It also has a great looking one-year chart, a perfect Earnings Table, and good upside. In fact, my assumptions could prove to be conservative as profit estimates have been jumping.

APH moves up from 5th to 4th in the Growth Portfolio and Focus List Power Rankings.

APH ranks 2nd in in the Conservative Growth Portfolio Power Rankings.

Power Rankings

4 of 30

Focus List

4 of 16

Conservative Stock Portfolio

2 of 18