Amphenol’s APH IT datacom growth is being strongly driven by an AI push, and this is not just a short-term spike but a long-term shift in infrastructure demand. In the latest fourth quarter of 2025, growth was mainly driven by companies expanding their capacity rather than temporary spending. The IT datacom segment, which is most linked to AI infrastructure, saw extremely high (triple-digit) growth, supported by strong demand for high-speed and power interconnect products used in advanced data centers.
The company is seeing record orders and a strong book-to-bill ratio, showing that customers are continuing to place large and ongoing orders. This aligns with long-term AI investment trends, where companies are committing to building large-scale systems over time. Overall, this steady demand and forward visibility suggest that growth is sustainable, backed by multi-quarter planning and continuous expansion efforts.
Amphenol is strengthening its competitive position as demand for AI infrastructure continues to grow. The addition of CommScope’s CCS business expands its offerings in fiber, copper and power connectivity, allowing it to support a broader range of AI data center needs. As AI workloads become more complex, they require higher performance and reliability. This increases the importance of Amphenol’s critical interconnect solutions, which help ensure smooth and efficient data transfer.
The company’s results show that communications and datacom are making up a larger share of total revenues, indicating a shift toward faster-growing, AI-driven markets. Looking ahead, management expects strong demand in the IT datacom segment to continue, supported by ongoing AI investments and large-scale data center deployments.
Strong AI-driven orders, along with an expanded product portfolio and solid execution, indicate that Amphenol’s datacom growth is linked to long-term infrastructure investments rather than short-term demand. The company’s first-quarter 2026 revenue guidance of $6.9-$7 billion highlights this continued momentum and growth acceleration. Amphenol is well-positioned to benefit from the ongoing expansion of AI infrastructure, which should support steady and long-lasting growth.
APH Faces Stiff Competition in the AI Infrastructure Space
Amphenol operates in a highly competitive AI infrastructure market, contending with strong rivals such as TE Connectivity TEL and Broadcom AVGO.
TE Connectivity is becoming a strong competitor in the AI infrastructure space by focusing on high-density data and power connectivity solutions for large-scale (hyperscale) systems. The company is winning AI-related projects quickly and forming early co-design partnerships with customers. This helps TE Connectivity become deeply integrated into customer plans, making it harder for customers to switch and improving profit margins. By offering platform-level solutions and scaling its manufacturing efficiently, TE Connectivity is increasing competitive pressure on Amphenol and strengthening its role in next-generation AI rack connectivity.
Broadcom poses a strong competitive challenge to Amphenol in AI infrastructure, controlling the silicon, switching and optical technologies that form hyperscale AI architectures. The rise of AI switches and custom accelerator solutions is putting Broadcom at the center of how AI clusters are designed. As Broadcom provides key components that form the backbone of these systems, it gains strong influence over the overall architecture and ecosystem. This control can indirectly impact Amphenol, as decisions around system design may favour solutions that align more closely with Broadcom’s platforms. As a result, Amphenol’s position in interconnects could face pressure, since Broadcom’s growing role in next-generation AI clusters allows it to shape standards, partnerships and component choices.
APH’s Share Price Performance, Valuation & Estimates
Amphenol’s shares have gained 7.5% over the year-to-date period, outperforming the broader Zacks Computer and Technology sector’s decrease of 1.3%.
APH’s Year-to-Date Price Performance
Image Source: Zacks Investment Research
Amphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 31.83X, higher than the sector’s 31.03X.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $4.32 per share, unchanged over the past 30 days. The figure indicates a 29.34% increase year over year.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
APH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amphenol Corporation (APH): Free Stock Analysis Report
TE Connectivity Ltd. (TEL): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).