Amphenol APH and Astera Labs ALAB are well-known major players in the connectivity and data center infrastructure space. Both companies help in moving data efficiently and cater to the needs of cloud providers, server OEMs and networking equipment providers. While Amphenol offers connectors, cable assemblies, and fiber optics, Astera Labs provides high-speed data connectivity chips, including PCIe retimers, smart cable modules and fabric switches.
APH or Astera Labs, which of these data infrastructure stocks has the greater upside potential? Let’s find out.
The Case for APH Stock
Amphenol’s prospects are driven by acquisitions and diversified end-markets. APH’s strategy of expanding its portfolio as well as end-markets through acquisitions has been a key catalyst over the trailing 12-month period. Amphenol’s expanding portfolio of fiber optic, power, antenna and sensor technologies continues to gain traction across datacom, aerospace and defense markets. Acquisitions added roughly $2 billion to revenues in 2025, while CommScope’s Connectivity and Cable Solutions (CCS) business is expected to contribute roughly $4.1 billion in revenues for 2026.
Plethora of acquisitions — Trexon, Rochester sensors, CIT, Lutze, CommScope’s Andrew business, LifeSync, Narda-MITEQ, XMA, Q Microwave and others — have been driving Amphenol’s prospects. The CCS buyout enhanced Amphenol’s competitive positioning by enhancing its ability to offer fiber optics at scale. The company can now offer a complete end-to-end interconnect solution, and the acquisition positions APH as an important partner across the entire system architecture design decisions.
Moreover, a diversified end-market bodes well for APH’s top-line growth prospects. IT datacom now contributes 36-38% of sales, while industrial, automotive, defense, mobile and communications networks all contributed meaningfully to 2025 revenues. This reduces APH’s reliance on any single end market.
However, rising integration risks post the acquisition of the CCS business and the lower initial margin of the acquired business are expected to hurt Amphenol’s growth in the near term. APH expects commercial air and automotive end-market sales to moderate sequentially. Mobile devices are expected to decline in the 30% range due to seasonality. This guidance is expected to remain an overhang on the stock.
The Case for ALAB Stock
Astera Labs is benefiting from its robust and diversified product portfolio that addresses the growing demands of AI infrastructure and connectivity solutions. The company benefits from strong demand for its PCIe solutions, which have been a major growth driver.
A standout performer in ALAB’s portfolio has been its Aries PCIe 6 DSP retimer solutions, which are currently the only PCIe 6 DSP retimer products shipping in high volume. The Aries portfolio saw 70% year-over-year growth in 2025. With the PCIe 6 transition cycle still in its early stages, ALAB expects further growth as more customers launch PCIe 6-capable AI accelerators and systems in 2026 and beyond. The Scorpio P-Series family contributed more than 15% of revenues in 2025. As the only PCIe 6 fabric available in large quantities, Scorpio P-Series is poised to grow in 2026, with shipments to more hyperscalers for next-generation AI platforms. The Scorpio X-Series is likely to move to high-volume production in the second half of 2026, which will further boost revenues.
ALAB is set to expand its footprint in the AI connectivity market, which is projected to grow 10-fold to $25 billion over the next five years. The Scorpio P-Series continues to ramp up, with shipments expected to expand to additional hyperscalers in 2026. Meanwhile, the Scorpio X-Series is anticipated to enter high-volume production in late 2026, further boosting revenues.
However, Astera Labs has been suffering from challenging macroeconomic uncertainties and stiff competition in the PCIe retimers market. A shift toward a higher mix of hardware sales has negatively impacted ALAB’s profit margins. Increased operating expenses from expanded research and development efforts are expected to keep Astera Labs’ price performance under check.
Price Performance and Valuation of APH and ALAB
Year to date, APH shares have appreciated 8.7%, outperforming Astera Labs shares, which have returned 2.8%.
Stock Price Performance: APH vs. ALAB
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Valuation-wise, both APH and ALAB are currently overvalued, as suggested by a Value Score of F.
Valuation: APH vs. ALAB
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In terms of forward 12-month Price/Sales, Amphenol shares are trading at 5.59X, lower than Astera Labs’ 20.11X.
How Do Earnings Estimates Compare for APH & ALAB?
The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.32 per share, unchanged over the past 60 days. This indicates a 29.34% increase year over year.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
The consensus mark for Astera Labs’ 2026 earnings is pegged at $2.39 per share, which has been steady over the past 60 days. The figure indicates 29.89% increase year over year.
Astera Labs, Inc. Price and Consensus
Astera Labs, Inc. price-consensus-chart | Astera Labs, Inc. Quote
APH is a Stronger Pick Than ALAB Right Now
Both Amphenol and Astera Labs benefit from the booming connectivity and data center infrastructure space. However, APH appears to be the stronger bet given its portfolio strength thanks to the plethora of acquisitions.
Amphenol currently carries a Zacks Rank #2 (Buy), which makes it a strong pick compared with Astera Labs, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).