Amphenol Corporation (APH) Surged on Strength in the Data Centre End Market

Baron Funds, an investment management company, released its “Baron Asset Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. stocks rose amid volatility caused by tariff policies and Middle East tensions. Early April risk-off sentiment was fueled by Trump’s “Liberation Day" tariffs, seen as more severe than expected. U.S. equities rose after April 8, driven by favorable trade news, strong earnings, dovish Fed signals, and AI momentum, reaching record highs by quarter’s end. During the second quarter, the fund was up 7.85% (Institutional Shares) compared to an 18.20% gain for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Asset Fund highlighted stocks such as Amphenol Corporation (NYSE:APH). Amphenol Corporation (NYSE:APH) designs and manufactures electrical, electronic, and fiber optic connectors. The one-month return of Amphenol Corporation (NYSE:APH) was 7.09%, and its shares gained 80.13% of their value over the last 52 weeks. On July 31, 2025, Amphenol Corporation (NYSE:APH) stock closed at $106.51 per share, with a market capitalization of $130.04 billion.

Baron Asset Fund stated the following regarding Amphenol Corporation (NYSE:APH) in its second quarter 2025 investor letter:

"Amphenol Corporation (NYSE:APH), a leading global supplier of advanced interconnect systems, contributed to performance during the quarter. The company reported robust results in April, with organic growth exceeding its prior guidance primarily because of strength in its data center end market. Shares continued to perform well as investors became more optimistic about increased capital spending on data infrastructure, partly driven by AI-related investments. We view Amphenol as a best-in-class industrial technology company with a strong track record of creating value through both organic and inorganic growth over time."

Amphenol Corporation (NYSE:APH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Amphenol Corporation (NYSE:APH) at the end of the first quarter, which was 86 in the previous quarter. Amphenol Corporation’s (NYSE:APH) second quarter sales were up 57% in U.S. dollars and 56% in local currencies to $5.650 billion. While we acknowledge the potential of Amphenol Corporation (NYSE:APH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Amphenol Corporation (NYSE:APH) and shared the list of best growth stocks to buy for the next 10 years. The London Company Mid Cap Strategy shared its optimistic views on the company in its Q2 2025 investor letter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.