Amphenol (APH) is riding two of the most powerful trends in today’s market: the rapid buildout of data centers and rising global defense spending.
The company is a dominant force in AI/data center interconnects, commanding an estimated 33% market share, while also playing a foundational role in defense technology through its rugged interconnects and cabling systems that power mission-critical military platforms.
This dual leadership has driven a wave of earnings estimate upgrades in recent months.
Investors have taken notice, as shares have surged over the last three months as confidence builds in Amphenol’s growth story. And with strong forecasts and long runways in both AI infrastructure and defense technology, the momentum looks poised to continue.
Below, I’ll break down the bullish catalysts supporting the stock, and finish with a look at a technical trading setup for those considering an entry.
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Amphenol Shares Rally on Earnings Upgrades
Wall Street has grown increasingly bullish on Amphenol, with analysts unanimously raising their earnings forecasts across all timeframes. Over the last 60 days, estimates for the current quarter have climbed nearly 20%, while full-year projections are up 13.5%. These steady upgrades have propelled the stock to a Zacks Rank #1 (Strong Buy) rating, reflecting strong momentum in analyst sentiment.
The growth outlook is equally compelling. Sales are expected to jump 35.6% this quarter and surge 41.5% for the full year, driven by strength in both data center interconnects and defense technology. Looking further ahead, earnings are projected to compound at an impressive 20.6% annually over the next three to five years.
For a company already entrenched in economically critical industries, this blend of near-term acceleration and long-term consistency makes Amphenol one of the more attractive and underfollowed names among these industries.
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Amphenol Stock on the Verge of a Breakout
As of this writing, shares of Amphenol are showing signs of breaking out from a bullish flag formation, a continuation pattern that often signals the resumption of a strong uptrend after a period of consolidation. For investors watching the stock, this setup is an encouraging sign that momentum may be building for the next leg higher.
The breakout zone sits around $110, a key resistance level that has now turned into support. As long as price action holds above this threshold, the technical picture points toward sustained upside. With rising earnings estimates, strong fundamental tailwinds, and broad investor interest, Amphenol’s chart is aligning with its fundamentals, creating an attractive window for traders and long-term investors alike.
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Should Investors Buy Shares in Amphenol?
Amphenol’s story continues to strengthen. The company recently posted record Q2 2025 results, with revenue climbing 57% year-over-year to $5.7 billion, EPS surging 84% to $0.81, and free cash flow exceeding $1.1 billion. At the same time, Amphenol is expanding its footprint with bold moves, including the planned $1 billion acquisition of Trexon to deepen its defense portfolio and the $10.5 billion purchase of CommScope’s connectivity business to enhance its fiber-optic capabilities for AI data centers.
With its leadership in AI interconnects, expanding role in defense technology, Amphenol is uniquely positioned to benefit from two of the most powerful trends in the market today. Coupled with rising earnings estimates and strong technical momentum, the bullish case remains compelling. For investors looking for exposure to both AI infrastructure and defense spending, Amphenol stands out as one of the most attractive names in the industrial tech space.
— Ethan Feller
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Source: Zacks