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APH's AI Datacom Strength Grows: Can It Challenge TEL & MRVL?
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Key Takeaways
Amphenol's IT datacom sales jumped 89% in Q2 2026, driven by strong AI demand.
APH is seeing strong AI demand for high-speed copper, fiber-optic and power interconnect solutions.
CommScope added $1.2B in Q2 sales and strengthened Amphenol's fiber-optic capabilities for IT datacom.
Amphenol (APH - Free Report) is benefiting significantly from accelerating demand in the IT datacom market, particularly for artificial intelligence (AI)-related applications. In the second quarter of 2026, IT datacom represented 43% of APH’s total sales, with revenues surging 89% year over year and 63% organically. Management also highlighted that the company’s AI revenue run rate has reached roughly $10.5-$11 billion, with AI-related sales growing faster than the overall IT datacom business. This momentum is strengthening APH’s position against TE Connectivity (TEL - Free Report) and Marvell Technology (MRVL - Free Report) in the expanding AI data-center connectivity market.
AI infrastructure expansion is driving strong demand for Amphenol’s high-speed copper, fiber-optic and power interconnect solutions. Management noted that virtually all of the 22% sequential IT datacom growth in the second quarter of 2026 came from AI-related products. Customers are requiring more copper, optics and power as AI clusters grow larger and more complex. APH’s portfolio spans passive and active fiber-optic solutions, high-speed copper and power connectivity, giving it exposure across multiple parts of the AI infrastructure stack. Power connectivity is another important growth opportunity.
APH’s offerings include board-level power, bus bars and complex cable assemblies extending from chips and racks to data-center switchgear. Management highlighted higher-voltage architectures, liquid cooling and sensor-enabled power connectors as emerging opportunities. Rising power density in AI systems could therefore expand Amphenol’s content per data center, complementing its high-speed data-connectivity business.
Amphenol’s acquisition of CommScope is further strengthening its optical position. In the second quarter of 2026, CommScope contributed more than $1.2 billion in sales while adding significant fiber-optic interconnect capabilities for IT datacom. Management said CommScope’s IT datacom business nearly doubled year over year and expects the market to account for just under half of CommScope’s 2026 sales compared with roughly one-third in 2025. CommScope is participating in customer discussions around the potential introduction of optics into scale-up architectures.
APH’s broad product portfolio may also help it participate across evolving AI architectures. Management said the company works with customers developing graphics processing unit, application-specific integrated circuit and XPU architectures, noting that all these architectures require interconnects. Management said inference is growing rapidly and requires an unprecedented level of interconnect intensity.
APH Faces Tough Competition
TE Connectivity remains a formidable competitor. Its Digital Data Networks (DDN) sales increased 34% year over year in the third quarter of fiscal 2026, while DDN bookings grew more than 70% year to date. TEL is benefiting from rising demand for high-speed copper, optical, and higher-voltage power connectivity as AI architectures evolve.
Marvell Technology is also expanding rapidly in AI data-center connectivity. Its data-center revenues increased 46% year over year to $2.17 billion in the second quarter of fiscal 2027. MRVL is seeing strong demand for optical digital signal processors, 1.6T connectivity, broadband analog products and switching while expanding its scale-up optics opportunities across near-packaged optics and co-packaged optics.
Shares of Amphenol have risen 16% year to date compared with the broader Zacks Computer and Technology sector’s 17% growth.
APH Stock’s YTD Price Performance
Image Source: Zacks Investment Research
APH stock is trading at a premium, with forward 12-month price/earnings of 25.32X compared with the broader sector’s 20.38X. Amphenol has a Value Score of D.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s earnings is currently pegged at 72 cents per share, up by 5 cents over the past 30 days, suggesting 53.19% growth.
View the Zacks #1 Rank List
Image: Shutterstock
APH's AI Datacom Strength Grows: Can It Challenge TEL & MRVL?
Key Takeaways
Amphenol (APH - Free Report) is benefiting significantly from accelerating demand in the IT datacom market, particularly for artificial intelligence (AI)-related applications. In the second quarter of 2026, IT datacom represented 43% of APH’s total sales, with revenues surging 89% year over year and 63% organically. Management also highlighted that the company’s AI revenue run rate has reached roughly $10.5-$11 billion, with AI-related sales growing faster than the overall IT datacom business. This momentum is strengthening APH’s position against TE Connectivity (TEL - Free Report) and Marvell Technology (MRVL - Free Report) in the expanding AI data-center connectivity market.
AI infrastructure expansion is driving strong demand for Amphenol’s high-speed copper, fiber-optic and power interconnect solutions. Management noted that virtually all of the 22% sequential IT datacom growth in the second quarter of 2026 came from AI-related products. Customers are requiring more copper, optics and power as AI clusters grow larger and more complex. APH’s portfolio spans passive and active fiber-optic solutions, high-speed copper and power connectivity, giving it exposure across multiple parts of the AI infrastructure stack. Power connectivity is another important growth opportunity.
APH’s offerings include board-level power, bus bars and complex cable assemblies extending from chips and racks to data-center switchgear. Management highlighted higher-voltage architectures, liquid cooling and sensor-enabled power connectors as emerging opportunities. Rising power density in AI systems could therefore expand Amphenol’s content per data center, complementing its high-speed data-connectivity business.
Amphenol’s acquisition of CommScope is further strengthening its optical position. In the second quarter of 2026, CommScope contributed more than $1.2 billion in sales while adding significant fiber-optic interconnect capabilities for IT datacom. Management said CommScope’s IT datacom business nearly doubled year over year and expects the market to account for just under half of CommScope’s 2026 sales compared with roughly one-third in 2025. CommScope is participating in customer discussions around the potential introduction of optics into scale-up architectures.
APH’s broad product portfolio may also help it participate across evolving AI architectures. Management said the company works with customers developing graphics processing unit, application-specific integrated circuit and XPU architectures, noting that all these architectures require interconnects. Management said inference is growing rapidly and requires an unprecedented level of interconnect intensity.
APH Faces Tough Competition
TE Connectivity remains a formidable competitor. Its Digital Data Networks (DDN) sales increased 34% year over year in the third quarter of fiscal 2026, while DDN bookings grew more than 70% year to date. TEL is benefiting from rising demand for high-speed copper, optical, and higher-voltage power connectivity as AI architectures evolve.
Marvell Technology is also expanding rapidly in AI data-center connectivity. Its data-center revenues increased 46% year over year to $2.17 billion in the second quarter of fiscal 2027. MRVL is seeing strong demand for optical digital signal processors, 1.6T connectivity, broadband analog products and switching while expanding its scale-up optics opportunities across near-packaged optics and co-packaged optics.
APH’s Share Price Performance, Valuation & Estimates
Shares of Amphenol have risen 16% year to date compared with the broader Zacks Computer and Technology sector’s 17% growth.
APH Stock’s YTD Price Performance
Image Source: Zacks Investment Research
APH stock is trading at a premium, with forward 12-month price/earnings of 25.32X compared with the broader sector’s 20.38X. Amphenol has a Value Score of D.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s earnings is currently pegged at 72 cents per share, up by 5 cents over the past 30 days, suggesting 53.19% growth.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
Amphenol currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.