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Investing.com - Jefferies maintained a Buy rating on TE Connectivity (NYSE:TEL) with a $280.00 price target, highlighting the company’s accelerating growth in industrial solutions. This target represents potential upside from the current share price of $217.10, aligning with InvestingPro data showing analysts’ targets ranging from $200 to $315 and a consensus recommendation of 1.67 (Buy).
TE Connectivity now forecasts 6-8% organic growth in its Industrial Solutions segment, up from a historical 4-6% rate, with approximately two-thirds of this expansion coming from digital data networks and energy sectors. The company’s overall revenue growth reached 8.94% in the last twelve months, with total revenue of $17.26 billion.
The company expects its AI revenue to more than double to over $3 billion by 2027 from $1.4 billion in 2025, driven by increasing demand for higher density, faster speeds, and advanced thermal management solutions.
TE Connectivity has doubled its engineering and manufacturing capacity to align with hyperscalers’ accelerated design cycles, securing a 30% market share in the AI connectivity space, where available connectivity per chip has increased approximately fivefold.
The firm’s grid-hardening business is projected to grow at a 12% CAGR through 2030, supported by North American energy capital expenditure growing at a 7% CAGR, while defense, space, and commercial transportation segments are expected to grow at twice the market rate.
In other recent news, TE Connectivity reported impressive fourth-quarter results, surpassing analyst expectations with revenue of $4.75 billion and earnings per share of $2.44, or $2.59 after adjustments. The results showed significant growth of approximately 17% year-over-year, with the Industrial segment increasing by 34% and the Transportation segment rising by 4%. Evercore ISI maintained its Outperform rating on TE Connectivity, although it removed the company from its Tactical Outperform list following the strong results. TD Cowen also raised its price target for the company to $275 from $220, maintaining a Buy rating due to the company’s potential in the artificial intelligence sector. Additionally, TE Connectivity announced the appointment of Ken Washington to its board of directors, effective November 17, 2025. Washington brings extensive technology leadership experience, having recently served as the chief technology and innovation officer at Medtronic. These developments reflect ongoing strategic growth and leadership changes within the company.
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