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Amphenol APH and TE Connectivity TEL are well-known global manufacturers of electronic connectors, sensors, and interconnect systems, serving similar industries such as automotive, aerospace, industrial, and data communications.
Per Fortune Business Insight report, the global electronic components market was valued at $393.63 billion in 2024 and is expected to grow from $428.22 billion in 2025 to $847.88 billion by 2032, with a CAGR of 10.3% over the forecast period 2025-2032. Both Amphenol and TE Connectivity are likely to gain from the massive growth opportunity highlighted by the growth pace.
However, tariffs on electronic components could increase production costs, potentially slowing growth and affecting profit margins for companies like Amphenol and TE Connectivity.
APH or TEL — Which of these Electronics stocks has the greater upside potential? Let’s find out.
The Case for APH Stock
Amphenol has been benefiting from higher revenues across the IT datacom, mobile networks, broadband, defense, commercial air and mobile devices automotive end markets.
In the fourth quarter of 2024, Amphenol saw record orders of $5.14 billion, up 58% year over year, resulting in a book-to-bill ratio of 1.16:1. The strong orders were primarily driven by increased demand from data centers, especially due to investments in artificial intelligence (AI) by several large customers.
Acquisitions have helped APH strengthen its product offerings and expand its customer base. The buyouts contributed 8% to 2024 revenues. The acquisition of CIT has expanded Amphenol’s footprint across defense, commercial air and industrial end markets. The Lutze acquisition strengthens APH’s broad offering of high-technology interconnect products for industrial markets and expands the range of value-added interconnect products.
In February 2025, APH announced the completion of its acquisitions of CommScope’s Outdoor Wireless Networks and Distributed Antenna Systems businesses, which are expected to generate $1.3 billion in 2025 sales. The company also concluded the acquisition of Lifesync Corporation, a medical interconnect provider with $100 million in annual sales.
The Case for TEL Stock
TE Connectivity is benefiting from secular growth trends in key markets and increasing demand for connectivity solutions, especially in AI, automotive electrification, and industrial automation.
The company saw orders grow to $4 billion, both sequentially and year over year, in the first quarter of fiscal 2025, driven by strong growth in its Industrial segment. This includes increased momentum in AI applications and strong demand in aerospace, defense, and energy sectors.
TEL’s strong momentum in AI applications, particularly in digital data networks, has been noteworthy. Its design wins in hyperscale AI platforms have set the company up for substantial revenue growth, which is expected to exceed $600 million in fiscal 2025.
Acquisitions have also played an important role in strengthening TEL’s portfolio. The Harger acquisition in the first quarter of fiscal 2025 expanded TEL’s portfolio in grid reliability and connectivity solutions, particularly for renewable power and utility infrastructure, strengthening its position in the energy sector.
In February 2025, TEL announced plans to acquire Richards Manufacturing for $2.3 billion in cash, aiming to strengthen its position in the North American energy market. The acquisition is expected to add $400 million in annual sales.
