Tariff Pressures Mount: Will China Exposure Slow APH Stock's Momentum?

Amphenol APH designs and manufactures connectors, interconnect systems, antennas, sensors and high-speed specialty cable. With vertically integrated facilities in over 30 countries, it supports diverse end markets, including IT datacom, automotive, mobile devices, and industrial applications. APH supplies to customers worldwide. In 2024, China contributed approximately 22% of total revenue, making it a significant market for the company.

Within China, Amphenol primarily operates in the IT datacom segment, where it supplies fiber-optic connectors, cable assemblies and signal integrity solutions used in data centers and telecom infrastructure. In the first quarter of 2025, China revenues stood at $793.9 million, up 18.4% year on year.

Ongoing tariff-related trade tensions with China are expected to add pressure to Amphenol’s outlook. Chinese telecom and datacom imports currently face 25% base duties, with expanded enforcement introducing a 10% baseline tariff and up to 20% in compliance-related surcharges, depending on classification and origin. These actions could dampen demand and reduce pricing flexibility across Amphenol’s China-linked datacom business. While the company’s decentralized manufacturing model provides flexibility, higher input costs and trade friction could weigh on near-term margin performance.

For the second quarter of 2025, APH expects net revenues between $4.9–$5.0 billion. Zacks projects China revenues at $1.05 billion. However, sustained trade friction remains a key overhang for the stock and is something investors should monitor closely.

APH faces stiff Competition

Amphenol competes with TE Connectivity TEL and CommScope COMM across global datacom infrastructure markets.

CommScope remains a strong player in fiber connectivity, structured cabling and telecom deployments. CommScope’s growing presence in broadband and enterprise infrastructure directly overlaps with Amphenol’s IT datacom offerings. 

TE Connectivity competes in high-speed interconnects and fiber systems. TE Connectivity’s scale and product depth challenge Amphenol across hyperscale, cloud and global datacom markets.

APH’s Share Price Performance, Valuation and Estimates

Amphenol’s shares have appreciated 41.4% year to date, while the broader Zacks Computer & Technology sector jumped 7% and the Zacks Electronics - Connectors industry returned 40%.

APH's Performance

Amphenol stock is trading at a premium, with a forward 12-month Price/Earnings of 35.08X compared with the sector’s 27.36X. APH has a Value Score of C.

APH's Valuation

The Zacks Consensus Estimate for Amphenol’s second-quarter 2025 earnings is pegged at 66 cents per share, unchanged over the past 30 days, indicating 53.49% year-over-year growth.

Amphenol Corporation Price and Consensus

Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote

The consensus mark for APH’s 2025 earnings is pegged at $2.68 per share, unchanged over the past 30 days. The figure indicates a 41.80% increase year over year.

Amphenol currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Want 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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research