Data Center Demand is Rising: Can it Fuel Further Upside to APH Stock?

Amphenol APH designs and manufactures interconnect systems, antennas, sensors and high-speed specialty cables used across key verticals, including cloud infrastructure, automotive and industrial electronics. 

Per Grand View Research, the global data center market reached $347.6 billion in 2024 and is projected to reach $652 billion by 2030, witnessing a CAGR of 11.2% over 2025 to 2030. The surge is being driven by expanding AI workloads, the rise of hybrid cloud models and increasing demand for dense, thermally intensive compute environments. This strong growth estimate bodes well for Amphenol’s prospects.

APH’s Communications Solutions segment supports large-scale data center infrastructure with high-speed interconnects and signal transmission systems used across compute, networking and storage. The segment reported $2.41 billion (50.2% of total revenues) in the first quarter of 2025. The Zacks Consensus Estimate for segment revenues is pegged at $2.47 billion for the second quarter.

Amphenol’s diversified portfolio has been a key catalyst in driving footprint across high-performance data centers, with offerings that include high-speed copper and fiber optic assemblies, backplane systems, and pluggable I/O interconnects. These products are widely used across GPU clusters, network switches and storage arrays. 

APH recently introduced OCP-compliant liquid cooling connectors designed to address rising thermal demands in AI-driven infrastructure. This addition broadens its system-level offering, enabling Amphenol to support both connectivity and thermal management across next-gen data center environments.

Amphenol Faces Stiff Competition

Amphenol faces competition from established players, including TE Connectivity TEL and CommScope COMM, in the data center interconnect space. 

TE Connectivity serves similar markets as APH through high-speed cable assemblies and optical transceivers. The company has expanded its AI-focused portfolio with 800G optical solutions for hyperscale environments. 

CommScope positions its network infrastructure solutions across data center connectivity through structured cabling systems and fiber optic solutions. The company's SYSTIMAX and netVISION product lines compete directly in enterprise and hyperscale markets.
 
Both TE Connectivity and CommScope are investing in next-generation connectivity technologies to address the same AI-driven infrastructure demands, benefiting Amphenol's data center business.

APH’s Share Price Performance, Valuation and Estimates

Amphenol’s shares have appreciated 43.2% year to date, while the broader Zacks Computer & Technology sector has jumped 7.5% and the Zacks Electronics - Connectors industry has returned 43.8%.

APH's Performance

Amphenol stock is trading at a premium, with a forward 12-month Price/Earnings of 35.48X compared with the sector’s 27.39X. APH has a Value Score of C.

APH's Valuation

The Zacks Consensus Estimate for Amphenol’s 2025 earnings is pegged at $2.67 per share, up by a penny over the past 30 days. The figure indicates a 41.27% increase year over year.

Amphenol Corporation Price and Consensus

Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote

Amphenol currently carries a Zacks Rank #2 (Buy). 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).

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