News
Bank of America just upgraded one of the hottest derivative AI plays in the market today
Published
5 months agoon
By
admin
Amphenol has been a hot trade this year, and Bank of America thinks it there’s even more upside ahead. Analyst Wamsi Mohan upgraded the Nvidia supplier and maker of electrical connectors, copper and fiber cables to buy from neutral. He also raised his price target on the stock to $150 from $120, pointing to a gain of 22.3% from Tuesday’s close. The stock has seen parabolic growth in recent months amid strength in several industries connected to the AI industry. The stock is up more than 41% over the past three months and roughly 91% in the past six months. The analyst’s bullish call on Amphenol is due to expected upside from its AI business and upcoming mergers and acquisitions activity. Most notably, Mohan projects that the company can sustain triple-digit percentage AI revenue growth into 2026. APH 1Y mountain Amphenol stock performance over the past year. “We see opportunity for 1) upside to C26 estimates on higher-than-expected AI rack volume, 2) upside to C27 estimates on incremental content of new architectures, 3) increased data center build announcements that will drive higher volumes, 4) less risk to C28 cliff year as shift to co-packaged optics (CPO) still will take time and CCS acquisition gives APH opportunity to expand participation with fiber, 5) mid-teens organic growth C26-28, 6) strong M & A acquisition cadence driving inorganic growth, & 7) mid-single digit organic growth ex-AI,” Mohan wrote in a note to clients. Mohan also remains confident that Amphenol’s business will remain strong despite upcoming design changes from Nvidia. He said he expects “higher content” in Nvidia’s Vera Rubin and Kyber systems compared to its Blackwell GPUs even though future Nvidia systems could use fewer overpass cables, which is a product Amphenol makes — meaning that, overall, Amphenol’s total component value per rack should rise. Beyond AI, the analyst noted that “APH’s growth ex-AI is a testament to the company’s strong execution.” Amphenol shares climbed more than 2% following the upgrade. Most analysts are bullish on the stock. LSEG data shows that 13 of 19 rate Amphenol as a buy or strong buy. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
This industrial giant is emerging as a big AI play, says Wells Fargo
Novo Nordisk’s strategy tested as investors push back on board revamp
Alibaba plans AI subscriptions, stablecoin-like payments with JPMorgan
UK borrowing costs spike on report government to scrap plans to raise income tax
Trump’s threatened the BBC with a $1B lawsuit: Here’s what’s going on
UBS’s picks for global returns next year
Wells Fargo sees Caterpillar continuing to roar higher, emerging as an artificial intelligence play. The bank initiated shares of...
Flags with the logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic...
Key Points Alibaba plans to use “tokenization” of payments for cross-border transactions in its business-to-business arm. Kuo Zhang, president...
Rachel Reeves, U.K. chancellor of the exchequer, delivers a speech in London, UK, on Tuesday, Nov. 4, 2025. Bloomberg...
US President Donald Trump speaks to reporters as he arrives at Palm Beach International Airport on Oct. 31,...
Investors looking for global diversification opportunities should look to a specific subset of stocks in Europe, according to UBS...
Eakarat Buanoi | Istock | Getty Images LISBON, Portugal — Top tech executives told CNBC they’re concerned about...
Tan Su Shan, deputy chief executive officer and managing director of institutional banking at DBS Group Holdings Ltd., speaks during...
CHENGDU, CHINA – OCTOBER 18: People walk past the Louis Vuitton store at Taikoo Li, a high-end shopping area that...
The United States said Thursday it will remove tariffs on some foods and other imports from Argentina, Ecuador, Guatemala and...
