Amphenol vs. TE Connectivity: Which Electronics Stock Should You Buy?

Core Insights - The global electronic components market is projected to grow significantly, from $428.22 billion in 2025 to$847.88 billion by 2032, with a CAGR of 10.3% [2] - Amphenol (APH) and TE Connectivity (TEL) are positioned to benefit from this growth, with APH reporting record orders and TEL experiencing strong demand in key markets [4][7] Amphenol (APH) Overview - APH has seen a 58% year-over-year increase in orders, reaching $5.14 billion in Q4 2024, driven by demand from data centers and AI investments [4] - Acquisitions have contributed 8$4 billion in Q1 fiscal 2025, supported by growth in AI, automotive electrification, and industrial automation [7] - The company anticipates over $600 million in revenue growth from AI applications in fiscal 2025 [8] - TEL's acquisition of Richards Manufacturing for$2.3 billion aims to strengthen its position in the North American energy market, adding $400 million in annual sales [10] Stock Performance and Valuation - In the past 12 months, APH shares increased by 16.8%, while TEL shares decreased by 9.7% due to macroeconomic challenges [12] - APH shares are currently overvalued with a Value Score of D, while TEL shares are considered cheap with a Value Score of B [15] - Earnings estimates for APH and TEL indicate a 23.81% increase for APH and a 6.48% increase for TEL in fiscal 2025 [17] Investment Outlook - TEL is viewed as a stronger investment option due to its growth potential in hybrid and EV production, along with a favorable valuation [18] - APH faces challenges from macroeconomic uncertainties and competition, which may impact its growth [19] - TEL holds a Zacks Rank 2 (Buy), while APH has a Zacks Rank 3 (Hold) [21]