Amphenol is the IBD Stock Of The Day as the electronic components maker notches a record high on accelerating sales and earnings growth.
In intraday trading on the stock market today, Amphenol stock reached an all-time high of 75.78.
With the move higher, it also cleared a short consolidation pattern with a 74.92 buy point, according to IBD analysis. Amphenol stock rose 2.3% to close at 75.35.
On Oct. 23, Amphenol stock touched a buy point of 70.84 from a 17-week consolidation period, according to IBD MarketSurge charts. That occurred after it delivered better-than-expected results for the third quarter.
Amphenol earned an adjusted 50 cents a share, up 28% year over year, on sales of $4.04 billion, up 26%, in the September quarter. Meanwhile, analysts polled by FactSet had expected earnings of 45 cents a share on sales of $3.81 billion.
The Wallingford, Conn.-based company has now posted four straight quarters of accelerating sales and earnings growth.
Amphenol Stock Gets AI Data Center Lift
Amphenol designs and manufactures electrical, electronic and fiber-optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.
It serves a diverse set of customers in the interconnect market. Further, its products are used in automotive, broadband communications, commercial aerospace, defense, industrial, information technology, mobile communications and other applications.
In a client note Monday, JPMorgan analyst Samik Chatterjee reiterated his overweight rating on Amphenol stock.
The company has "favorable positioning within AI data centers," Chatterjee said. That business "is expected to ramp significantly" amid heightened capital spending by hyperscalers, he said.
"We expect Amphenol's AI revenues to expand from about $1 billion in 2024 to about $3 billion in 2025," Chatterjee said.
Amphenol stock is on the IBD Tech Leaders list.
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