Amphenol Is a Wide Moat and Diversified Connector Supplier With Attractive AI Exposure

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows it to expand the top line even amid an individual market downturn. We also think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.