Amphenol Q2 Sales Up 55%, AI Orders Hit Record $10.7B

Amphenol's Q2 results underscore how AI infrastructure spending is benefiting companies that supply the physical layer of data centers, not just chipmakers. The company's record $10.7B in orders and 55% sales growth reflect strong demand for high-speed connectivity components, as thousands of processors in AI data centers need to communicate with each other. This makes Amphenol a second-order beneficiary of GPU spending, with September manufacturing PMI data indicating strong demand for AI-related electronic components.

The CommScope acquisition, completed in January 2026 for $10.5B, is exceeding expectations. Management now expects the business to contribute $4.6B in revenue and $0.30 adjusted EPS pre-split in 2026, up from initial expectations of $4.1B and $0.15. The company's cash flow strength—$1.6B operating and $1.2B free cash flow in Q2—supports its acquisition-led growth strategy without requiring heavy capital expenditures.

Near-term risks include elevated input costs for copper, aluminum, steel, and semiconductors, which could pressure margins if commodity prices continue to rise. Rising long-term U.S. Treasury yields (10-year around 4.81%) also present valuation concerns for growth stocks. The stock split, which took effect September 2, does not change the investment case but lowers the share price and improves liquidity. Technically, $164.14 is the immediate resistance level; a sustained close above it could lead to $171.95, while support lies at $160.69.