Usman Kabir
1 min read
In This Article:
TD Cowen earlier this month raised the price target on Amphenol Corporation (NYSE:APH) to $70 from $63 and kept a Hold rating on the shares. Amphenol specializes in designing, manufacturing, and marketing electrical, electronic, and fiber optic connectors.
The advisory said the AI ramp had been incredible, and numbers kept moving higher. At some point the quarter over quarter ramp would slow or reverse, and it would be a problem, but not now.
In earnings for the first quarter of 2025, the company reported record sales of $4.81 billion, an increase of 48% year-over-year. The firm guided Q2 sales between $4.9 billion and $5 billion. This represents a year-over-year sales growth of 36% to 39%. APH expects strong contributions from the IT datacom market, particularly from AI-related products, with continued investments in AI data centers and IT infrastructure. Defense sales are projected to grow in the high single-digit range.
While we acknowledge the potential of APH, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APH and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
