Connectors (APH / TEL) "Can connectors find valuation support?" Spak

研报英文原文证据摘录

Connectors (APH / TEL) "Can connectors find valuation support?" Spak

Global Research

15 May 2026ab

Connectors (APH / TEL) Equities

AmericasCan connectors find valuation support?

Industrial

Joseph Spak, CFA

Fundamentals and valuations look attractive, but can that overcome narrative/ Analyst

flows? joseph.spak@ubs.com

APH and TEL are -4%/-9% YTD, respectively vs. S&P +10%. The catalyst that +1-212-713 3089

started the sell-off was the debate over their future opportunity in a changing data Robert Saltzman

center architecture amid shifts from copper to optical. APH has also dealt with Analyst

concerns over share loss in Nvidia Kyber midplane interconnect. robert.saltzman@ubs.com

+1-212-713 2992

On the copper/optical debate, we believe both companies are still fairly well

Gabriel Gonzales, CFA

positioned. For instance, APH bought CCS giving them fiber connector and cable

Associate Analyst

product. Further, we believe copper will remain in architectures with a potentially gabriel.gonzales@ubs.com

larger opportunity amid the shift to 800v. Both companies have indicated they are +1-212-713 4866

working directly with hyperscalers to design future architectures that are still

Alejandro Nuno

multiple years out.

However, the optical narrative has been tough to break. Since more optical heavy alejandro.nuno@ubs.com

+1-212-713 3886 architectures are still further out, it will take time to play out. The concern/debate

may linger and potentially remain an overhang. New optical headlines only fan the

flames.

While we aren't dismissive of the above concerns, we also believe there are other

market forces weighing on the shares, particularly over the past few months. We

always found it interesting that APH/TEL straddled both industrial and tech/semi

investor universes.