Amphenol Corporation (APH): The Best Electronic Components Stock to Buy Now

We recently compiled a list of the 10 Best Electronic Components Stocks to Buy Now. In this article, we are going to take a look at where Amphenol Corporation (NYSE:APH) stands against the other electronic components stocks.

President Trump recently exempted smartphones, computers, and many other electronic and tech devices and components from his reciprocal tariffs. A new guidance from US Customs and Border Protection that was issued on Friday, April 11 came after Trump had imposed 145% tariffs on products from China. The guidance also includes exemptions for semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards.

READ ALSO: 14 Best American Tech Stocks To Buy Now and 10 Best EV Stocks to Buy Under $50.

The White House explained that these exemptions were made because President Trump wants to give companies time to move their production and manufacturing to the US. On Sunday, April 13, US Commerce Secretary Howard Lutnick pointed out that these electronics and components would soon be covered under new tariffs. President Trump also said on social media that these products will receive no exceptions.

According to a Federal Register notice put online, the US Commerce Department started a national security investigation into imports of semiconductor technology and related products. The official document calls for public comments on the investigation with the comment period stated to end on May 7, 2025. This further confirms that chips and the electronic supply chain are not to be excluded from President Donald Trump’s tariff plans.

The investigation covers a wide variety of items. These include chip components like silicon wafers, equipment used to make chips, and “downstream products that contain semiconductors.” Semiconductors play a crucial role in various modern electronic devices and this investigation could have a big impact on the tech and electronics industries.

Methodology

To compile our list of the 10 best electronic components stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest electronic components companies. We sorted our results based on market capitalization and picked the top 25 electronic components stocks. We also reviewed our own rankings, financial media reports, and various online resources to compile a list of the best electronic components stocks. Next, we focused on the 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best electronic components stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Amphenol Corporation (NYSE:APH)

Number of Hedge Fund Holders: 86

Amphenol Corporation (NYSE:APH) is an American company that ranks among the best electronic components stocks to buy now. It is a major designer, manufacturer, and marketer of electrical, electronic, and fiber optic connectors and interconnect systems, antennas, sensors, and sensor-based products and coaxial and high-speed specialty cable. The company has operations in approximately 40 countries around the world. Through its products, Amphenol Corporation (NYSE:APH) serves a range of end markets including Automotive, Broadband Communications, Commercial Aerospace, Defense, Industrial, Information Technology and Data Communications, Mobile Devices, and Mobile Networks.

On April 14, Citi adjusted its outlook on Amphenol Corporation (NYSE:APH) and reduced the price target from $89 to $75 while maintaining a “Buy” rating. This adjustment came after the Trump administration announced reciprocal tariff exemptions on PCs, smartphones, and other products. This is expected to help the North American communications equipment sector. Despite this, Citi lowered its forecasts for data center capital expenditures and PC models to reflect anticipated weaker demand because of broader economic conditions. The firm has expressed a preference for stocks with exposure to AI servers. Many enterprises maintain a fixed IT budget and are not likely to increase spending in response to rising prices. Citi believes that the consumer sector is expected to get hit the hardest by inflation and lower demand. These factors saw the firm lower the price target for Amphenol Corporation (NYSE:APH).

Overall, APH ranks 1st on our list of the best electronic components stocks to buy now. While we acknowledge the potential of APH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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