Amphenol Corporation (APH) Rose with Increasing Expectations for Data Center Spending

Baron Funds, an investment management company, released its “Baron Asset Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued the previous quarter’s rally in the third quarter of 2025. The expectation of the Federal Reserve (the Fed) to cut interest rates was the primary driver behind the market rally. In the third quarter, the fund declined 4.23% (Institutional Shares) compared to 2.78% for the Russell Midcap Growth Index and an 8.18% return for the Russell 3000 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Asset Fund highlighted stocks such as Amphenol Corporation (NYSE:APH). Amphenol Corporation (NYSE:APH) designs and manufactures electrical, electronic, and fiber optic connectors. The one-month return of Amphenol Corporation (NYSE:APH) was 12.25%, and its shares gained 89.47% of their value over the last 52 weeks. On November 7, 2025, Amphenol Corporation (NYSE:APH) stock closed at $139.09 per share, with a market capitalization of $170.254 billion.

Baron Asset Fund stated the following regarding Amphenol Corporation (NYSE:APH) in its third quarter 2025 investor letter:

“Amphenol Corporation (NYSE:APH), a leading global supplier of advanced interconnect systems for data centers, gained during the quarter. Its shares rallied as expectations for data center capital spending continued to rise with the accelerating adoption of AI. In addition, Amphenol announced its largest-ever acquisition— CommScope’s Connectivity and Cable Solutions business for $10.5 billion—which was well received by investors. Amphenol has demonstrated consistent shareholder value creation through prudent capital deployment and disciplined acquisitions. We remain shareholders given the company’s durable competitive advantages, favorable tailwinds from AI-driven data center construction, and its proven long-term track record of both organic and inorganic growth.”

What’s Fueling Wall Street’s 90-Day Optimism on Amphenol (APH)?

Amphenol Corporation (NYSE:APH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held Amphenol Corporation (NYSE:APH) at the end of the second quarter, up from 69 in the previous quarter. Amphenol Corporation’s (NYSE:APH) third quarter sales were up 53% in US dollars and 52% in local currencies to $6.194 billion. While we acknowledge the risk and potential of Amphenol Corporation (NYSE:APH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Amphenol Corporation (NYSE:APH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Amphenol Corporation (NYSE:APH) and shared the list of best NYSE stocks to buy and hold for the next decade. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.