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Key Takeaways

• Amphenol is an AI-powered tech giant benefiting from surging demand for data center interconnect solutions.
• Amphenol gains from diversified exposure across defense, industrial, datacom, and AI-driven cloud infrastructure.
• Analog Devices is seeing AI-led growth from automation, EV battery systems, and demand for high-speed connectivity.

The AI saga, supported by the massive growth of cloud computing and data centers, has yet to fully unfold. This space remains rock solid, supported by an extremely bullish demand scenario. The demand for data center capacity has surged to manage and store the vast amount of cloud computing-based data.

We have narrowed our search to 2 AI-powered technology behemoths (with market capital of more than $100 billion) to buy at this stage to augment your portfolio returns. These companies are: Amphenol Corp. (APH - Free Report) and Analog Devices Inc. (ADI - Free Report).

These 2 stocks have surged in the past year with more upside left, buoyed by the massive AI boom globally. Both stocks currently sport a Zacks Rank #1 (Strong Buy) rating. The chart below shows the price performance of our two picks in the past month.
 

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Amphenol Corp. 

Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance. 

Amphenol benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. The company is a dominant force in AI-powered data center interconnects, commanding an estimated 33% market share. Amphenol’s advanced fiber-optic and high-density interconnect solutions are now essential for hyperscale data centers and 5G deployments.

Expanding spending on both current and next-generation defense technologies bodes well for Amphenol’s top-line growth. Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. Solid demand for high-speed and power interconnect products, which are critical components in next-generation IT systems, creates a long-term growth opportunity. 

Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment.

Electrification in transportation and increasing electronic content in medical devices are driving the adoption of Amphenol’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment. 

Amphenol has an expected revenue and earnings growth rate of 12.4% and 21.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% in the last 30 days. Amphenol has a long-term (three to five years) earnings growth rate of 38.7%, which is significantly higher than the S&P 500 Index’s growth rate of 15.8%.

Analog Devices Inc.

Analog Devices has demonstrated broad-based recovery, margin resilience, and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure, and automotive electrification offer multi-year tailwinds. Strong momentum across the electric vehicle space on the back of its robust Battery Management System solutions remains a catalyst for Analog Devices. 

AI-driven demand for automatic test equipment is fueling a surge in Analog Devices’s signal chain and power content, with memory test system content increasing 300%. With lean channel inventories, strong order momentum, and improved bookings, Analog Devices’s industrial business is well-positioned for a sustained upcycle.

Analog Devices is also targeting robotics and humanoid markets as a multi-year growth driver for its industrial automation business. We believe that the AI-driven robotics adoption will be a multi-year revenue catalyst for Analog Devices. The company anticipates that revenues from its automation business will double by 2030.

Analog Devices’s advanced analog and mixed-signal technologies enable faster, more efficient data transmission, which is critical to next-generation AI networks. As global cloud and telecom operators ramp up capacity to support AI workloads, Analog Devices’s deep expertise in high-speed connectivity positions it to capture sustained, high-value growth opportunities in this expanding infrastructure cycle.

Analog Devices has an expected revenue and earnings growth rate of 16.4% and 25.7%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% over the last 30 days. Analog Devices has a long-term earnings growth rate of 18.5%, which is higher than the S&P 500 Index’s growth rate of 15.8%.

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