BofA Turns Bullish on Amphenol, Citing AI and Data Center Growth Drivers

Amphenol (NYSE: APH) shares climbed 5% premarket Wednesday after Bank of America upgraded the stock to Buy from Neutral and raised its price target to $150 from $120, reflecting optimism over the company’s positioning in the accelerating AI infrastructure and data connectivity market.

Key Analyst Takeaways

BofA analysts said they see multiple catalysts for Amphenol’s upside:

AI Rack Volume Upside: Potential for higher-than-expected AI rack growth through 2026.
New Architecture Opportunities: Incremental content gains from new data center designs and electrical interconnect upgrades.
Data Center Expansion: Increasing hyperscaler buildouts to drive higher component volumes.
Reduced Long-Term Risk: Transition to co-packaged optics (CPO) expected to take longer than feared, giving Amphenol more time to benefit from current architectures.
M&A Tailwind: Continued mergers and acquisitions cadence providing inorganic growth opportunities.

Growth Outlook

BofA forecasts mid-teens organic growth from 2026–2028, supported by both AI infrastructure demand and continued expansion across fiber and connectivity solutions through Amphenol’s CCS acquisition.

Excluding AI tailwinds, analysts expect mid-single-digit organic growth and strong margin sustainability.

“Amphenol is structurally positioned to be a winner in the multi-year AI infrastructure cycle,” BofA noted, highlighting the firm’s diversified exposure across server, storage, and networking components.