Amphenol stock broke out above an alternative buy point on Thursday. That makes the artificial intelligence data center play Thursday's selection for IBD 50 Stocks To Watch.
On IBD MarketSurge, shares edged past a four-weeks-tight pattern with a buy point of 112.35. As of Wednesday's closing price, the AI stock had gained 59% year-to-date.
The stock also hit an all-time high on Thursday. On its daily chart, a rising relative strength line shows the stock is also outperforming the market.
Amphenol designs, manufactures and assembles sensors, antennas, coaxial cables and other specialty connectivity products in roughly 40 countries. Besides the data center industry, Amphenol's products are used in commercial aerospace, automotive, communication network, defense and other industries.
On A Dealmaking Spree
Amphenol has been on a deal-making spree as it seeks to increase its electrical, electronic and fiber optic offerings for the AI data center market and other industries.
In August, the company announced its plans to acquire Trexon for $1 billion in cash. Trexon makes cable assemblies for the defense market. That followed another plan to acquire CommScope's Connectivity and Cable Solutions business for $10.5 billion in cash.
CommScope has been selling some of its businesses to reduce its debt. The CommScope deal is expected to close in the first half of 2026.
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Shares fell amid the company's second-quarter results on July 23. But the stock quickly bounced off its 50-day moving average before heading to its all-time high.
Growth accelerated during its June-ended quarter. Earnings grew 84% to 81 cents per share while sales also increased 57% to $5.7 billion.
AI Stock: Amphenol Has Rising Profit Estimates
For its third quarter, the company's midpoint earnings outlook sits at 78 cents on sales of $5.45 billion. That came in a little below estimates of 79 cents in earnings per share on $5.5 billion revenue.
However, analysts have revised their profit estimates higher for Amphenol. In 2025, they see earnings growing 60% to $3.03 per share. For 2026, estimates sit at $3.43 in earnings per share — a 13% increase.
Amphenol holds ideal scores of 99 on both its Composite Rating and EPS Rating. Its Relative Strength Rating sits at 93.
The AI stock also boasts strong institutional support and has an Accumulation/Distribution Rating of B- on a scale of A-E. Mutual funds own 56% of outstanding shares. More funds have added the stock to their holdings in each of the past seven quarters. The hefty Up/Down Volume Ratio of 1.6 is yet another indicator of demand for the stock over the past 50 days.
Several of Investor's Business Daily mutual fund index participants such as the Fidelity Contrafund (FCNTX), the J.P. Morgan Large-Cap Growth Fund (SEEGX) and the MFS Growth Fund (MFEGX) hold a position in Amphenol stock.
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