Amphenol forecasts upbeat quarterly results on AI data center demand
Aerospace components manufactured by Amphenol are displayed at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 21, 2023. REUTERS/Benoit Tessier/File Photo
April 29 : Electronic gear maker Amphenol forecast second-quarter revenue above Wall Street estimates on Wednesday, betting on enterprise spending for its components used in artificial intelligence data centers.
Shares of the company, which provides interconnect, sensor and antenna solutions for end markets such as automotive, commercial aerospace, defense, industrial and data communications jumped 9.5 per cent in premarket trading.
• Demand for Amphenol's connectors and sensor systems has surged as tech companies aggressively build out data center infrastructure needed to support generative AI workloads.
• The company has continued to expand its technology portfolio through acquisitions, including its $10.5 billion purchase of CommScope's Connectivity and Cable Solutions business in January, which significantly strengthened Amphenol's capabilities in fiber-optic and data-center connectivity products.
• Amphenol forecast revenue in the range of $8.1 billion to $8.2 billion for the quarter ending June 30, compared with analysts' average estimate of $7.69 billion, according to data compiled by LSEG.
• It reported revenue of $7.62 billion for the quarter ended March 31, beating estimates of $7.09 billion. Adjusted profit came in at $1.06 per share, exceeding estimates of 94 cents.
