Amphenol: Better Than Many AI-Related Investments, But Still Expensive

(10min)

Summary

  • Amphenol delivered tremendous Q4 results and similarly upbeat guidance heading into 2025.
  • Shares pulled back despite the tremendous earnings report, potentially offering a buy-the-dip opportunity.
  • I struggle to get comfortable with the starting 37x P/E ratio even while acknowledging the company's considerable strengths.
  • However, for investors that really want exposure to the AI boom, Amphenol looks like a better option than many of the alternatives.

Cables on computer server

Leland Bobbe/DigitalVision via Getty Images

Amphenol (NYSE:APH) is an American electronics company which makes specialized tech equipment such as fiber optic connectors, coaxial cables, antennas, and interconnect solutions. The company originally began in 1932 under the name American Phenolic Corp. which was later

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This article was written by

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Ian Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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