Evercore ISI Adds Amphenol (APH) to TAP Outperform List

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $165.00 price target on Amphenol (NYSE: APH).

The analyst comments "ALL YOU NEED TO KNOW: There has been a tremendous amount of focus on when/ if NVDA will move from copper to fiber for scale-up. This has resulted in some (unfounded) concerns that names like APH are overly copper-exposed. Based on our recent industry checks, we believe those concerns are premature and copper is expected to remain the scale-up solution through Rubin and Rubin Ultra. Specifically, our latest checks suggest: 1) Rubin AND Rubin Ultra (Kyber) will STICK WITH COPPER for scaleup. 2) Rubin and Rubin Ultra racks were essentially redesigned (vertical blade orientation, 100% liquid cooling to eliminate airflow requirements, and a PCB midplane replacing cable cartridges) to keep GPUs within copper's ~2 meter reach limit. 3) Bi-directional signaling buys another generation. Rubin doubles NVLink bandwidth per GPU (from 1.8 TB/s to 3.6 TB/s) by using simultaneous bi-directional signaling on the same differential pair, effectively doubling throughput while avoiding the insertion-loss wall associated with pushing to 400G electrical per lane. 4) CPO enters via scale-out first, not scale-up. NVDA's Spectrum-X Photonics and Quantum-X Photonics switches deploy CPO for rack-to-rack (scale-out connectivity). 5) CPO insertion is likely required at 3.2T where copper to fiber math starts to switch largely due to higher power per bit requirements + need for retimers. Our industry checks suggest that NVDA could go to CPO for Feynman (planned for 2028) if they run out of options to increase size of the scale-up domain. Net/Net: GTC should reinforce "Copper for Longer" for scale-up through 2027. This alleviates near-term concerns on APH (and to a lesser extent TEL), as Kyber actually increases high-density connector content (Paladin HD2 family) even as it eliminates cable cartridges."

For an analyst ratings summary and ratings history on Amphenol click here. For more ratings news on Amphenol click here.

Shares of Amphenol closed at $152.64 yesterday.

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