Nvidia may replace Amphenol with Foxconn as major supplier
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy APH?
Source: seekingalpha
Amphenol Corp's stock fell 5.00% as it crossed below the 5-day SMA amid broader market declines.
Nvidia is considering replacing Amphenol with Foxconn Interconnect Technology for its Kyber midplane connectors, indicating a significant shift in its supply chain strategy. Analyst Alicia Xi from GF Securities noted that Foxconn is expected to expand its role in the Kyber system, which could impact Amphenol's market position. This news comes as Nvidia raises its price target for Foxconn, reflecting confidence in its growth potential.
The potential supplier change could lead to a competitive landscape shift, affecting Amphenol's future revenue and market share. Investors will be closely monitoring how this development influences Amphenol's performance in the coming quarters.
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Analyst Views on APH
Wall Street analysts forecast APH stock price to rise
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 123.620
Low
135.00
Averages
172.92
High
210.00
Current: 123.620
Low
135.00
Averages
172.92
High
210.00
About APH
Amphenol Corporation is a designer, manufacturer, and marketer of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cables. The Company operates through three segments. The Harsh Environment Solutions segment designs, manufactures and markets a range of ruggedized interconnect products and other products for use in the industrial, defense, commercial aerospace, automotive, mobile networks, medical and other markets. Communications Solutions segment designs, manufactures and markets a range of connector and interconnect systems for use in the information technology and data communications, mobile devices, industrial, mobile networks, broadband communications, automotive, commercial aerospace and defense end markets. Its Interconnect and Sensor Systems segment designs, manufactures and markets a range of sensors, sensor-based systems, connectors and value-add interconnect systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Market Repricing: Investors are questioning the profitability of AI companies, particularly those that are burning cash, leading to a repricing of AI-related stocks and reflecting concerns about future profitability.
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- Growing Infrastructure Demand: Companies like Vertiv and Amphenol benefit from AI's cooling and connectivity needs, underscoring the increasing importance of infrastructure roles within the AI ecosystem, suggesting future investments will prioritize these durable demands.
See More
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- Market Transformation: Investors are shifting focus from AI 'builders' to 'adopters,' reflecting a growing demand for actual revenue and margins, resulting in significant declines for some AI stocks as profitability becomes a central concern.
- Software Sector Adjustment: The software industry has faced a sell-off as the market reprices companies, questioning the viability of those that remain unprofitable amidst rapid AI advancements, impacting both good and bad companies alike.
- Infrastructure Demand Surge: Data center cooling companies report record backlogs, indicating sustained demand for physical AI infrastructure, while long-term contracts for enterprise AI tools provide revenue visibility, bolstering market confidence.
- Portfolio Restructuring: Future AI investment portfolios will focus more on infrastructure rather than concentrated tech bets, with companies like Vertiv and Equinix benefiting from their critical roles in data centers and internet infrastructure, highlighting the market's emphasis on durable demand.
See More
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- Market Positioning Advantage: Analysts highlight that investors are mistakenly viewing Amphenol as a pure copper play, while in reality, it plays a crucial role for AI customers by providing a broad range of connectivity solutions and scaling seamlessly on a global basis, showcasing its unique positioning as a strategic partner.
- Sales Growth Potential: Amphenol's Cell Connection Systems (CCS) is projected to contribute $4.1B in sales and about 15 cents in EPS by 2026, with analysts considering this guidance conservative, as they anticipate CCS could achieve sales of $4.6B to $4.9B driven by cyclical recovery and AI contributions.
- Financial Robustness: Analysts note that Amphenol's net leverage sits at about 1.8 times, with annual free cash flow generation of $5.0B, providing significant capacity for further mergers and acquisitions, while recovery in core markets such as defense, mobile devices, and industrial segments offers additional growth potential.
See More
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- Company Announcement: AMPHENOL CORP has announced the pricing of its Euro-denominated senior notes offering.
- Financial Details: The offering is part of the company's strategy to raise capital through debt instruments in the European market.
See More
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- Bond Offering Size: Amphenol's wholly owned subsidiary, Amphenol Technologies Holding GmbH, successfully priced a €500 million senior notes offering at an annual interest rate of 3.625%, maturing in 2031, demonstrating the company's strong financing capability in the capital markets.
- Clear Use of Proceeds: The net proceeds from this bond offering will be used to repay 0.75% Euro senior notes maturing in 2026 and for general corporate purposes, indicating the company's strategic intent to optimize its capital structure and financial flexibility.
- Transaction Timeline: The bond offering is expected to close on March 30, 2026, subject to customary conditions, reflecting the company's clear planning for future financing initiatives.
- Positive Market Reaction: Following the announcement, Amphenol's stock price rose by 0.10% in after-hours trading to $128.09, indicating investor confidence in the company's financial health.
See More
