What Provides TE Connectivity Ltd. (TEL) a Sustained Growth and Margin Expansion?

The London Company, an investment management company, released “The London Company Large Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The economy retained most of its momentum from the second quarter, even though the economic data released during the third quarter was mixed. The portfolio returned 6.3% (6.2%, net) during the quarter compared to an 8.0% gain for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks such as TE Connectivity Ltd. (NYSE:TEL). TE Connectivity Ltd. (NYSE:TEL) manufactures and sells connectivity and sensor solutions. The one-month return of TE Connectivity plc (NYSE:TEL) was 11.17%, and its shares gained 65.53% of their value over the last 52 weeks. On November 3, 2025, TE Connectivity plc (NYSE:TEL) stock closed at $246.87 per share, with a market capitalization of $72.718 billion.

The London Company Large Cap Strategy stated the following regarding TE Connectivity plc (NYSE:TEL) in its third quarter 2025 investor letter:

“TE Connectivity plc (NYSE:TEL) – TEL was a top performer as it is benefiting from AI spending plus delivering stronger margins despite a mixed demand environment in other end markets. Its diversified portfolio, high-value products, and market leadership, combined with disciplined capital allocation through dividends and buybacks, position it for sustained growth and margin expansion.”

TE Connectivity plc (TEL): How Its Sensor Solutions Power the Future of AI Infrastructure

TE Connectivity plc (NYSE:TEL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held TE Connectivity plc (NYSE:TEL) at the end of the second quarter, up from 45 in the previous quarter. While we acknowledge the risk and potential of TE Connectivity plc (NYSE:TEL) 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 TE Connectivity plc (NYSE:TEL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered TE Connectivity plc (NYSE:TEL) and shared the list of best manufacturing stocks to buy. 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.