Amphenol Corporation (APH) Surged Following the Demand Uptick

Fenimore Asset Management, an investment management company, released its Q4 2025 investor letter. A copy of the same can be downloaded here. The stock market was solid in 2025 but volatile. While investors balanced AI enthusiasm, economic uncertainty, and monetary policy concerns.  The summer rally was driven by AI-related spending and economic resiliency, whereas the fourth quarter saw a more volatile market due to valuation pressures and macro uncertainty. Stocks from the large-cap technology and communication services sectors led the market in the quarter, with the S&P 500 Index rising 2.66%. The firm believes that the trend of AI stocks outpacing high-quality stocks is unsustainable. In Q4 2025, Fenimore Small Cap Strategy returned -4.12%, trailing its benchmark, the Russell 2000 Index’s 2.19% return. The underweight exposure to low-quality stocks drove the underperformance in the quarter. Fenimore Dividend Focus Strategy declined -4.41% in Q4 compared to the Russell Midcap Index’s 0.16% return. Furthermore, Fenimore Value Strategy declined -1.17% in Q4 compared to the Russell Midcap Index’s 0.16% return. Investments in the financial and industrial sectors led to the relative underperformance of the Strategy in the quarter. The firm expects mixed market conditions in 2026 as many AI-related stocks look expensive while high-quality companies are trading at multi-year lows, creating opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2025.

 In its fourth-quarter 2025 investor letter, Fenimore Asset Management highlighted stocks such as Amphenol Corporation (NYSE:APH). Amphenol Corporation (NYSE:APH) designs and manufactures electrical, electronic, and fiber optic connectors. Amphenol Corporation (NYSE:APH) was the top performer in both the Fenimore Value Strategy and Fenimore Dividend Focus Strategy. On January 15, 2026, Amphenol Corporation (NYSE:APH) stock closed at $154.22 per share. One-month return of Amphenol Corporation (NYSE:APH) was 13.99%, and its shares gained 122.15% of their value over the last 52 weeks. Amphenol Corporation (NYSE:APH) has a market capitalization of $188.774 billion.

Fenimore Asset Management stated the following regarding Amphenol Corporation (NYSE:APH) in its fourth quarter 2025 investor letter:

"Amphenol Corporation (NYSE:APH) is a beneficiary of data center buildouts supporting AI. This has propelled demand for products in their IT Datacom segment, which grew 128% organically in the most recent quarter. APH also supplements growth with accretive acquisitions."

Amphenol Corporation (NYSE:APH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held Amphenol Corporation (NYSE:APH) at the end of the third quarter, which was 81 in the previous quarter. Amphenol Corporation’s (NYSE:APH) third quarter sales were up 53% in US dollars and 52% in local currencies to $6.194 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 hot AI stocks to keep on your radar. In addition, please check out our hedge fund investor letters Q4 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.