Core Viewpoint - The AI bull market is experiencing a resurgence, with new stocks leading the rally instead of traditional giants like NVIDIA and Microsoft [1][2]. Group 1: Alphabet Inc. - Alphabet Inc. (NASDAQ: GOOG) is positioned as a leader in the AI race, with a market cap of $3.8 trillion and significant advancements in AI technology, including the Gemini V3 upgrade and Waymo's driverless car service [3]. - Analysts from JP Morgan and Scotiabank have raised their price targets for Alphabet to $336 and $340, respectively, reflecting strong earnings performance in 2025 [3]. - Despite a recent four-day decline, GOOG shares show strong upside potential, trading above the 50-day and 200-day simple moving averages (SMAs) since July [6]. Group 2: TTM Technologies Inc. - TTM Technologies (NASDAQ: TTMI) is a key player in the AI sector, focusing on high-density printed circuit boards (PCBs) essential for AI systems, with a market cap nearing $7 billion and $2.7 billion in sales over the last year [7]. - The company reported a 22% year-over-year increase in quarterly revenue, driven by AI data center sales, and has a backlog in aerospace and defense approaching $1.5 billion [7]. - TTMI shares have surged nearly 170% year-to-date, with strong technical indicators suggesting continued upward momentum [9]. Group 3: Celestica Inc. - Celestica (NYSE: CLS) has seen significant growth due to demand for its products in AI data centers, achieving record quarterly EPS of $1.58 and revenue of $3.16 billion in Q3 2025 [10]. - The company's market cap has reached $35 billion, with annual sales projected to exceed $11 billion, and Citigroup has upgraded the stock to Buy with a price target of $375 [10]. - CLS shares are above both the 50-day and 200-day SMAs, indicating a strong uptrend, although recent momentum has shown signs of weakening [12]. Group 4: Amphenol Corp. - Amphenol (NYSE: APH) is a major supplier in the AI data center industry, providing essential components like connectors and cables, with a market cap of $173 billion [13]. - The company reported record revenue of $6.19 billion and EPS of $0.93 in Q3, surpassing analyst expectations by 12% and 17% respectively [13]. - APH shares have doubled year-to-date, with technical indicators suggesting continued strength despite recent volatility [16].

Core Insights - Amphenol (APH) shares have increased by 90.3% over the past year, significantly outperforming the Zacks Computer & Technology sector's return of 24.1% [1] - The company has experienced strong order growth, which rose by 38% year over year and 11% sequentially, reaching $6.11 billion [1] - Amphenol's diverse portfolio in fiber optic, power, antenna, and sensor technologies is gaining traction in datacom, aerospace, and defense markets [1][7] - The company's acquisition strategy has been a key driver of growth, with over 50 acquisitions in the past decade [8] Performance Comparison - Amphenol has outperformed peers such as TE Connectivity (TEL), Corning (GLW), and Belden (BDC) in the past year, with TE Connectivity and Corning returning 49.9% and 68.9%, respectively, while Belden shares fell by 8.2% [2] Growth Drivers - Rising AI workloads and cloud infrastructure upgrades are increasing demand for high-speed interconnects, benefiting APH's Communications Solutions segment [7] - Electrification in transportation and increased electronic content in medical devices are driving the adoption of Amphenol's cable assemblies and sensor-based systems [7] Acquisition Strategy - Amphenol continues to expand its market reach through targeted acquisitions, including the recent acquisition of Trexon for approximately $1 billion, expected to be accretive to earnings in the first year [8][12] - The pending acquisition of CommScope's Connectivity and Cable Solutions business will enhance Amphenol's interconnect product capabilities in the IT datacom market [10] Financial Strength - Amphenol reported operating cash flow of $1.47 billion in Q3 2025, representing 117% of net income, with free cash flow at $1.215 billion or 97% of net income [11] - Total liquidity at the end of Q3 was $10.9 billion, including $3.9 billion in cash and short-term investments, supporting further acquisitions and shareholder returns [12] - The company returned $354 million through dividends and share buybacks in Q3 2025 and raised its quarterly dividend by 52% to 25 cents per share, effective January 2026 [12] Earnings Estimates - The Zacks Consensus Estimate for Q4 2025 earnings is 92 cents per share, indicating a 67.3% growth year-over-year, with revenues expected to reach $5.84 billion, suggesting a 35.2% increase [13] - For the full year 2025, earnings are estimated at $3.29 per share, reflecting a 74.1% growth from 2024, with revenues projected at $22.74 billion, a 49.4% increase [14] Valuation - Amphenol shares are trading at a premium, with a forward 12-month price-to-earnings (P/E) ratio of 36.10X, higher than the broader sector average of 28.53X and peers like TE Connectivity and Corning [15] - The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend [18] Conclusion - Amphenol's diversified end-market exposure, expanding interconnect portfolio, and effective acquisition strategy support solid growth visibility, justifying its premium valuation [21]

Core Insights - Amphenol Corporation is a leading global provider of high-tech interconnect, sensor, and antenna solutions, serving various industries such as automotive, broadband communications, and aerospace [1] - The company faces competition from TE Connectivity and Molex in the electronic components sector [1] Institutional Interest - William J. Doherty, President of the CS Division at Amphenol, sold 80,000 shares of Class A Common Stock at approximately $142.00 each, indicating a disposition of securities [2] - Despite the sale, institutional interest in Amphenol remains strong, with BLI Banque de Luxembourg Investments acquiring 32,200 shares valued at around $3.1 million [3] - Norges Bank acquired a new stake in Amphenol valued at over $2.1 billion, while T. Rowe Price Investment Management Inc. increased its holdings by 196.3%, now owning over 16.7 million shares valued at approximately $1.1 billion [4] - UBS Asset Management Americas LLC increased its stake by 639% during the same period [4] Stock Performance - Amphenol's stock is currently priced at $141.49, reflecting a 1.63% increase, with fluctuations between $140.90 and $143.48 during the day [5] - Over the past year, the stock reached a high of $144.37 and a low of $56.45 [5] - The company has a market capitalization of approximately $173.19 billion, maintaining its status as a significant player in the electronic components industry [5]

Market Overview - The current market sentiment is positive despite some headwinds such as rising inflation and unemployment [1][2] - The Federal Reserve's actions on interest rates are anticipated to impact consumer behavior and market performance [2] AI Industry Insights - The AI sector, particularly companies like Nvidia, is expected to continue growing, although there are concerns about stock valuations and earnings performance [3][4] - Nvidia's recent earnings report led to a stock price decline, indicating potential weakness despite strong sales prospects [4] Investment Strategies - Investing in the "picks and shovels" of the AI industry, such as HVAC and data centers, is recommended as a more stable approach [5][8] - The HVAC ETF has shown a year-to-date increase of over 25%, outperforming sectors like crypto and data servers [7][8] Specific Company Performance - Comfort Systems and Amphenol are highlighted as top picks within the HVAC sector, with Comfort Systems up 120% and Amphenol up 100% this year [6] - The HVAC industry is characterized as a reliable sector driving growth for AI-related companies [8][15] Cryptocurrency Market - Bitcoin has experienced a 20% decline this month, but there is potential for recovery, suggesting it may be a buying opportunity [9][10] - The historical volatility of stocks like Amazon is referenced to illustrate the potential long-term value of holding onto investments like Bitcoin [10][12] Economic Indicators - Rising costs in essential areas such as food, housing, and education are impacting consumer affordability, despite lower gasoline prices [20][21] - The administration's focus on job creation and economic growth is seen as a potential driver for market opportunities, although challenges remain for consumers [22]

Core Viewpoint - Amphenol Corporation has demonstrated strong financial performance and growth potential, significantly outperforming the broader technology sector in recent months and years [2][3][5]. Financial Performance - Amphenol's revenue for Q3 2025 increased by 53.4% year over year to $6.19 billion, exceeding the consensus estimate of $5.48 billion, driven by high demand for interconnect solutions in IT datacom and communication networks [5]. - Adjusted EPS for Q3 2025 rose by 86% to $0.93, surpassing the Street's estimate of $0.79 [5]. - For fiscal Q4 2025, Amphenol forecasts sales between $6 billion and $6.1 billion, indicating a growth of 39% to 41% year over year, with adjusted diluted EPS projected between $0.89 and $0.91, reflecting a growth of 62% to 65% [5]. - For the full fiscal year 2025, sales are anticipated to be between $22.66 billion and $22.76 billion, with adjusted diluted EPS expected in the range of $3.26 to $3.28, representing annual increases of 49% to 50% and 72% to 74%, respectively [6]. Stock Performance - Amphenol's stock is currently trading approximately 3.9% below its November high of $144.37, but has rallied nearly 26.2% over the past three months, significantly outperforming the Technology Select Sector SPDR Fund (XLK), which gained only 7.9% during the same period [2]. - Over the past 52 weeks, Amphenol's stock surged by 89.4%, far exceeding XLK's 20.9% gain [3]. - Year-to-date, the stock has jumped 99.7%, again outperforming XLK's 20.9% rise [3]. - Since May, Amphenol has consistently traded above its 200-day and 50-day moving averages, indicating a sustained uptrend [3].

Core Insights - Amphenol (APH) is experiencing significant growth, primarily driven by its Communication Solutions segment, which accounts for nearly half of total sales and saw a 96.4% year-over-year increase in Q3 [1][11] Group 1: Revenue Drivers - The surge in revenue is attributed to the rapid expansion of next-generation data centers, AI compute infrastructure, and advanced communications networks, with IT datacom being the strongest contributor [2] - Demand for high-speed, power, and fiber-optic interconnects is robust, essential for AI workloads, with both AI-driven and traditional datacom products showing strong growth [2] Group 2: Segment Performance - Communications networks have also contributed positively, supported by increased operator spending and the integration of the Andrew acquisition, leading to a segment operating margin of 32.7%, a 710-basis-point improvement from the previous year [3] - The acquisition strategy, including the pending acquisition of CommScope's CCS business expected in early 2026, is set to enhance Amphenol's competitive position [4] Group 3: Future Projections - Projections for the Communication Solutions segment remain strong, with expected revenue growth of 87% in 2025 and 19% in 2026, driven by increasing complexity in AI architectures and global bandwidth needs [5] Group 4: Competitive Landscape - Amphenol faces competition from TE Connectivity (TEL) and Astera Labs (ALAB), with TEL being a formidable rival across various sectors including automotive and high-speed communications [6][7] - Astera Labs is emerging as a challenger in high-speed connectivity, focusing on semiconductor-based solutions for AI and cloud infrastructure [8] Group 5: Share Performance and Valuation - Amphenol's shares have increased by 89.7% year-to-date, outperforming the broader Zacks Computer & Technology sector's growth of 27.5% [9] - The Zacks Consensus Estimate for Amphenol's 2025 earnings is $3.29 per share, reflecting a 74.07% year-over-year increase [16]

Group 1 - Amphenol Corporation (NYSE:APH) is recognized as a strong long-term investment option, with Barclays raising its price target from $120 to $143 while maintaining an Equal Weight rating [1] - The company reported a significant 53% year-over-year growth in sales, driven by robust organic growth across nearly all end markets and contributions from its acquisition strategy [2] - The operating margin for the quarter reached a record high of 27.5%, indicating strong profitability [2] Group 2 - Amphenol completed the acquisition of Trexon for approximately $1 billion in cash, which is expected to be accretive to earnings in the first year and will be included in the Harsh Environment Solutions segment [3] - The company specializes in the design, marketing, and manufacturing of various connectors, antennas, interconnect systems, sensors, and specialty cables, with operations divided into three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems [4]

Core Insights - Amphenol (APH) and TE Connectivity (TEL) are leading global manufacturers of electrical connectors, sensors, and interconnect systems, serving critical markets such as automotive, industrial, aerospace, and communications [1][2] - Both companies are benefiting from long-term trends including vehicle electrification, data-center growth, and the demand for high-speed connectivity [2] Amphenol Overview - Amphenol reported record sales of $6.2 billion in Q3, a 53% increase year-over-year, with 41% organic growth and $6.1 billion in orders [3][4] - The company achieved a record operating margin of 27.5%, with adjusted EPS growing by 86% and free cash flow reaching $1.2 billion [3] - Amphenol's IT datacom business, now 37% of total sales, more than doubled due to strong AI-related demand [4] - Future opportunities include AI growth, defense spending, recovery in commercial aerospace, and electric vehicle transitions, with projected Q4 earnings between $0.89 and $0.91 per share [5][6] TE Connectivity Overview - TE Connectivity reported record Q4 revenues of $4.75 billion, a 17% year-over-year increase, with adjusted EPS rising 25% to $2.44 [7] - The company’s Industrial Solutions segment saw significant growth, with Digital Data Networks increasing by 80% and generating over $900 million in AI-related revenues [8] - TE Connectivity anticipates double-digit growth in Q1 of fiscal 2026, with sales up 17% and adjusted EPS up 23% [10] Comparative Performance - Year-to-date, Amphenol shares have increased by 98.4%, outperforming TE Connectivity's 55.5% increase [12] - Amphenol's shares are trading at a forward Price/Sales ratio of 6.67X, compared to TEL's 3.42X, reflecting its faster revenue and earnings growth [15] - The Zacks Consensus Estimate for Amphenol's 2025 earnings is $3.29 per share, indicating a 74.07% year-over-year increase, while TEL's estimate for fiscal 2026 is $10.56 per share, reflecting a 20.55% increase [18][20] Investment Outlook - Amphenol is positioned as the stronger stock due to its robust revenue and earnings growth, exceptional operating margins, and dominant position in AI-driven datacenter interconnects [21] - TE Connectivity, while steady, faces uneven end-market exposure, making Amphenol a more compelling buy in the current market [21]

Core Insights - The American Century U.S. Quality Growth ETF (QGRO) has made significant adjustments to its holdings, reflecting the flexibility of ETF managers in response to market movements [1][3][6] Fund Overview - QGRO was launched in September 2018 and charges 29 basis points for investing in U.S. firms with high growth potential and strong fundamentals [2] - The fund tracks the American Century U.S. Quality Growth Index, which screens for factors like income and quality using metrics such as cash flow and profitability [2] Recent Changes in Holdings - Notable changes in QGRO's portfolio include the dropping of at least two stocks and the addition of two new stocks, along with adjustments to the weights of six existing stocks [3] - Major tech companies such as Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) saw their weights decrease by 1.22%, 1.32%, and 1.74% respectively between November 21 and 24 [3] - Conversely, Amphenol Corporation (APH), Ralph Lauren Corporation (RL), and Expedia Group, Inc. (EXPE) experienced weight increases of 3.53%, 2.1%, and 1.33% respectively [4] Specific Stock Adjustments - The two stocks that were dropped from QGRO included Itron Inc. (ITRI) and Booz Allen Hamilton Holding Corporation (BAH), which had weights of 0.76% and 0.72% respectively before being removed [5] - The largest additions to the fund were Cardinal Health, Inc. (CAH) and HCA Healthcare, Inc. (HCA), with weights of 1.08% and 1.25% respectively [5] Performance Metrics - QGRO has achieved a year-to-date return of 12.4%, focusing on quality and growth-oriented companies [6] - The recent reduction in weight for three major tech stocks may attract investors looking to diversify into other rising companies [6]

Core Insights - Madison Mid Cap Fund's Class I returned 1.9% in Q3 2025, underperforming the Russell Midcap Index which increased by 5.3% [1] - Information Technology sector led the performance in both the quarter and year-to-date [1] Company Performance - Amphenol Corporation (NYSE: APH) reported a one-month return of -2.59% but gained 75.47% over the last 52 weeks, closing at $130.36 per share with a market capitalization of $159.568 billion on November 20, 2025 [2] - Amphenol's Q3 sales increased by 53% in US dollars and 52% in local currencies, reaching $6.194 billion [4] Investment Insights - Madison Mid Cap Fund highlighted Amphenol as a strong performer due to its revenue growth driven by AI-related data center spending, alongside other companies like Arista Networks and MKS [3] - The number of hedge funds holding Amphenol increased from 69 to 81 in the second quarter, indicating growing interest [4]