Evercore says Amphenol selloff around AI-centric perceived weakness ‘overdone’

Evercore ISI notes that with Amphenol (APH) down about 7% intra-day the firm had been fielding questions on what was driving the weakness and pointed to a few factors at play, including the fact that there appeared to be a broad-based selloff on AI-centric names that was “clearly impacting APH as well.” There are numerous perspectives that imply not only is Nvidia’s (NVDA) Blackwell delayed, but it’s likely mix is shifting towards NVL36 racks from 72 racks and there is discussion about Nvidia reworking NVL72 racks so they could use less cabling in aggregate, the analyst added. Overall, the firm thinks the selloff around AI-centric perceived weakness is “rather overdone” and it expects Amphenol to see “sizable EPS upside” to current Street calendar year 2025 EPS expectations, leading the firm to reiterate its Outperform rating and $75 price target on the shares.