Is APH a good stock to buy? We came across a bullish thesis on Amphenol Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on APH. Amphenol Corporation’s share was trading at $166.42 as of June 29th. APH’s trailing and forward P/E were 47.82 and 33.44 respectively according to Yahoo Finance.
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Amphenol Corporation, together with its subsidiaries, designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States and internationally. APH is being framed as one of the cleanest publicly traded beneficiaries of the AI infrastructure buildout, and that view is reinforced by a notable options positioning where a trader sold 5,500 July 17, 2026 $105 puts at $1.40, collecting $770,000 against $57.75 million of notional exposure, reflecting conviction the stock will not fall another 24%.
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The underlying business is a 94-year-old leader in interconnect solutions spanning IT datacom, defense, aerospace, automotive and industrial markets, with increasing concentration in high-speed connectivity for hyperscaler data centers.
The latest quarter marked record performance with $7.62 billion in sales, up 58% year over year, adjusted EPS of $1.06 beat estimates, and record $9.435 billion order book delivering a 1.24x book-to-bill, underscoring strong demand visibility. Margins expanded to 27.3% while free cash flow conversion remained robust, IT datacom exceeds 40% of revenue, increasingly driven by AI-related deployments. Management’s integration of CommScope CCS tracking ahead of plan, reinforcing incremental earnings power, capital returns remain strong following a 52% dividend increase and continued buybacks.
Sell-side sentiment has strengthened with targets as high as $215, implying upside as earnings estimates trend higher. Thesis supported by strong backlog momentum, resilient demand, and valuation debates on multiple expansion rather than fundamentals. Against this backdrop, $105 strike sits deeply out of the money relative to recent trading levels and 52-week range, positioning trade as a high-conviction premium collection strategy on a structurally compounding AI infrastructure supplier. At 30x earnings, sentiment volatility generates attractive implied premiums for put sellers.
Previously, we covered a bullish thesis on Amphenol Corporation (APH) by TMTMoats in March 2025, which highlighted diversified interconnect exposure, AI and EV-driven growth, and acquisition-led expansion. APH’s stock price has appreciated by approximately 164.87% since our coverage. OppCost shares a similar view but emphasizes record AI-driven orders, strong margins, and options market conviction through large put selling activity.
Amphenol Corporation is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 112 hedge fund portfolios held APH at the end of the first quarter which was 103 in the previous quarter. While we acknowledge the risk and potential of 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 APH and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
