My uncle, bless his heart, once tried to explain compound interest using only salt shakers and a very stained placemat. It didn’t take. But even he, a man who still believes in fax machines, would probably understand what’s happening with Amphenol. The stock jumped, you see – a solid 6% this morning, which, in the current climate, feels less like growth and more like a temporary reprieve from the inevitable. Goldman Sachs and BofA, those arbiters of good taste and financial stability, upgraded their price targets. $183 and $165, respectively. Numbers. They always come down to numbers, don’t they?
The 2026 Prediction
It’s funny, isn’t it, how a company that makes connectors—the little bits that hold everything else together—can suddenly become a darling of the artificial intelligence crowd? Amphenol, apparently, is no longer just a mature industrial cycle company. It’s a “picks and shovels” play, which is a phrase I always associate with failed gold rushes and slightly desperate prospectors. They’re supplying the infrastructure for the AI boom, which feels a bit like building sandcastles on a rising tide, but who am I to judge? I still haven’t figured out how to program my thermostat.
They recently acquired Commscope’s Connectivity and Cable Solutions business. A mouthful, I know. Apparently, this adds “significant fiber optic interconnect capabilities.” I suspect that translates to “more little bits that hold everything else together.” The CEO, Adam Norwitt, released a statement, as CEOs are contractually obligated to do. It’s expected to add $4.1 billion in sales by 2026. Which, when you consider they’re already expecting $22.9 billion, feels less like a revolution and more like…a slightly larger pile of money. My sister, who runs a pottery studio, would kill for that kind of increase.
Is It Worth the Risk?
Management thinks this acquisition will add $0.15 to earnings per share in 2026. Fifteen cents. It’s enough to buy…well, not much, really. Wall Street is currently expecting $4.42 in earnings, putting Amphenol at 35 times forward earnings. Which is, shall we say, optimistic. It’s like pricing a vintage teacup as if it were a Faberge egg. They’re going to need to demonstrate some serious momentum in AI-related sales—and quickly—to justify this valuation. Or, you know, hope for a general upswing in the industrial sector, which, frankly, feels like a long shot.
The good news is, both of those things seem…possible. AI spending is still going strong, despite all the doomsaying, and the industrial sector might, just might, bounce back from its recent slump. It’s a gamble, of course. Everything is. I once bet my uncle he couldn’t balance a salt shaker on his nose. He won. And I learned a valuable lesson about the inherent unpredictability of life—and the surprising dexterity of aging relatives.
Read More
- 39th Developer Notes: 2.5th Anniversary Update
- Shocking Split! Electric Coin Company Leaves Zcash Over Governance Row! 😲
- Live-Action Movies That Whitewashed Anime Characters Fans Loved
- Gold Rate Forecast
- You Should Not Let Your Kids Watch These Cartoons
- Here’s Whats Inside the Nearly $1 Million Golden Globes Gift Bag
- All the Movies Coming to Paramount+ in January 2026
- Game of Thrones author George R. R. Martin’s starting point for Elden Ring evolved so drastically that Hidetaka Miyazaki reckons he’d be surprised how the open-world RPG turned out
- ‘Bugonia’ Tops Peacock’s Top 10 Most-Watched Movies List This Week Once Again
- USD RUB PREDICTION
2026-01-15 20:24