Amphenol stock price target raised to $120 from $110 at Evercore ISI

Investing.com - Evercore ISI has raised its price target on Amphenol (NYSE:APH) to $120.00 from $110.00 while maintaining an Outperform rating, citing the company’s expanding artificial intelligence (AI) portfolio. The stock has demonstrated remarkable momentum with a 69% return over the past year, trading near its 52-week high of $112.35. According to InvestingPro data, Amphenol maintains a "GREAT" financial health score, positioning it well for continued growth in the AI sector.

The firm revised its estimate of Amphenol’s quarterly AI revenue from approximately $700-750 million as of the March quarter to approximately $1.15 billion as of the June quarter. This figure includes around $150 million in pulled-in shipments from the third quarter, though underlying demand remains strong with a book-to-bill ratio of 0.98:1 and orders up approximately 4% sequentially. The company’s impressive 40.5% revenue growth in the last twelve months supports this robust expansion trajectory.

Evercore ISI projects Amphenol will surpass a $4 billion AI revenue run rate by calendar year 2025 and achieve more than $6 billion in calendar year 2026. The firm notes that NVIDIA (NASDAQ:NVDA) could become a 10%+ customer for Amphenol by the end of 2025 or certainly in 2026.

The company holds majority share in next-generation AI programs across high-speed power, fiber optics, power management, and critical rack/tray level connections. Its AI revenue for the quarter was split approximately 65/35 between xPU and Cloud, with xPU share rising on NVL72 related shipments.

Amphenol engages early with partners to set standards across product roadmaps, providing a first-mover advantage and broader ecosystem influence, according to Evercore ISI. The firm believes Amphenol’s position as a key enabler for AI technologies across the product stack remains underappreciated.

In other recent news, Amphenol Corporation has announced several significant developments. The company plans to acquire Trexon, a provider of high-reliability interconnect and cable assemblies for the defense market, for approximately $1 billion. This acquisition is expected to close in the fourth quarter of 2025. Additionally, Amphenol is set to acquire CommScope’s Connectivity and Cable Solutions segment for about $10.5 billion, with the deal anticipated to close in the first half of 2026, pending shareholder approval.

On the earnings front, Amphenol’s second-quarter report revealed a 21% earnings per share beat, with third-quarter guidance approximately 13% ahead of consensus estimates. In light of these results, UBS raised its price target for Amphenol to $120, maintaining a Buy rating. Truist Securities also increased its price target to $126, citing impressive results and guidance. Evercore ISI reiterated an Outperform rating with a $110 price target after the Trexon acquisition announcement. These developments reflect the company’s strategic moves and positive outlook as noted by various analyst firms.

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