Summary of Amphenol Corp. (APH) Investor Field Trip Company Overview - **Company**: Amphenol Corp. (APH) - **Industry**: Datacenter and Connectivity Solutions Key Takeaways 1. Strong Demand in Datacenter Market - Amphenol is well positioned in the datacenter market with strong demand continuing from hyperscale companies - There is a significant need for high-speed and low-latency connectivity products to support new compute technologies [1][3] 2. Competitive Positioning - The company highlighted its strong copper portfolio and growing optics business - Amphenol sees a long runway for its high-speed copper offerings and can provide a full set of solutions spanning copper and optics due to its engineering relationships [2][4] 3. Capital Expenditure Growth - Goldman Sachs TMT colleagues estimate that capital expenditures for the largest US hyperscalers will grow by 78% in CY25 and 37% year-over-year in CY26 - The IT Datacom end market, where Amphenol reports AI revenue, grew by 128% year-over-year in Q3 [3] 4. Diverse End Market Exposure - Amphenol maintains diversified end market exposure, with robust growth in its IT Datacom segment - The Communications Networks business experienced 25% organic growth in Q3, with nearly all end markets growing at least double digits organically [4] 5. Investment Strategy - Management emphasized that investments in AI-related projects are not at the expense of other end markets, indicating a balanced investment strategy across various sectors [4] 6. Ability to Respond to Demand Changes - Amphenol can ramp up new facilities and tooling and utilize AI/machine learning to support yields and output, demonstrating agility in responding to demand changes [7] 7. Strong Margins - The company reported record high operating margins of 27.5% in the last quarter, despite facing headwinds such as tariffs and commodity costs - Management indicated that while incremental margins may not remain at the 40%+ level, a long-term target of 30% incrementals is sustainable [8] 8. Investment Rating and Price Target - Goldman Sachs has a Buy rating on APH shares with a 12-month price target of $154, representing an upside of 12.7% from the current price of $136.70 - Key downside risks include revenue growth, margins, tariffs, trade situations with China, and execution on M&A [9][10] Additional Insights - The company is actively expanding its datacenter fiber optics portfolio with complementary products, indicating a strategic focus on enhancing its offerings in the datacenter space [2] - The management's commitment to maintaining a diversified portfolio while capitalizing on growth opportunities in the datacenter market reflects a proactive approach to market dynamics [4] This summary encapsulates the critical insights from the investor field trip to Amphenol Corp., highlighting the company's strategic positioning, market dynamics, and financial performance.

Market Overview - Wall Street continues its upward trend, with major stock indexes like the Dow, S&P 500, and Nasdaq Composite trading near all-time highs [1] - The technology sector, particularly driven by the adoption of generative AI, has been a significant contributor to this rally [2] Company Highlights: Amphenol Corp. (APH) - Amphenol provides AI and machine learning-based connectivity solutions, including high-density connectors and cables [6] - The company holds a 33% market share in AI/data center interconnects, benefiting from strong demand in hyperscale data centers and 5G deployments [7] - Amphenol's revenue for 2025 is estimated at $21.54 billion, reflecting a 41.5% year-over-year increase, with earnings per share projected at $3.02, a 59.8% increase [11] - For 2026, revenues are expected to reach $23.49 billion, a 9% year-over-year growth, with earnings per share of $3.38, indicating an 11.7% increase [12] Company Highlights: AppLovin Corp. (APP) - AppLovin operates a software platform for mobile app developers, enhancing marketing and monetization efforts [13] - The company's AI engine, Axon 2.0, has significantly improved ad performance, leading to a quadrupling of advertising spend on its platform [14] - AppLovin's revenue for 2025 is projected at $5.5 billion, a 16.7% year-over-year increase, with earnings per share expected to be $8.95, a 97.6% increase [18] - For 2026, revenues are estimated at $6.9 billion, a 26.2% year-over-year growth, with earnings per share of $13.50, indicating a 50.9% increase [19]