Amphenol(US:APH) ZACKS·2025-09-08 12:40Industry Overview - The artificial intelligence (AI) infrastructure market is experiencing significant growth, driven by the demand for cloud computing and data centers, with the generative AI market projected to grow from $40 billion in 2022 to $1.3 trillion over the next decade [2] - Global AI spending is expected to increase by 31.9% from 2025 to 2029, with agentic AI spending reaching approximately $1.3 trillion by 2029, representing 26% of global IT spending [2] Company Summaries Amphenol Corp. (APH) - Amphenol is a leader in AI-powered connectivity solutions, holding an estimated 33% market share in data center interconnects, benefiting from strong demand in AI and data center growth [8][9] - The company has an expected revenue growth rate of 41.5% and earnings growth rate of 59.8% for the current year, with a Zacks Consensus Estimate for earnings improving by 1.3% in the last 30 days [12] Western Digital Corp. (WDC) - Western Digital's cloud end market, which constitutes 90% of total revenue, surged by 36% in the last reported quarter, driven by high-capacity HDD demand [13] - The company anticipates a revenue of $2.7 billion for fiscal Q1 2026, up 22%, supported by strong data center demand and high-capacity drive adoption [16] - Expected revenue growth rate is -17.8% and earnings growth rate is 31.9% for the current year, with a Zacks Consensus Estimate for earnings improving by 13.4% in the last 60 days [17] Celestica Inc. (CLS) - Celestica is a major player in the electronics manufacturing services sector, benefiting from strong demand in the Connectivity & Cloud Solutions segment, particularly in networking and optical programs [18][19] - The company has an expected revenue growth rate of 20.6% and earnings growth rate of 43% for the current year, with a Zacks Consensus Estimate for earnings improving by 9.9% in the last 60 days [22] Jabil Inc. (JBL) - Jabil is experiencing growth from its AI-powered data center infrastructure and plans to invest $500 million to expand its manufacturing capabilities in this sector [26] - The company has an expected revenue growth rate of 6.1% and earnings growth rate of 17.8% for the current year, with a Zacks Consensus Estimate for earnings improving by 0.3% in the last 60 days [29] Comfort Systems USA Inc. (FIX) - Comfort Systems is capitalizing on the data center boom driven by AI and cloud computing, with a focus on specialized HVAC solutions that are critical for data center operations [31] - The company has an expected revenue growth rate of 13.9% and earnings growth rate of 44.1% for the current year, with a Zacks Consensus Estimate for earnings improving by 10.8% in the last 60 days [32]