TE CONNECTIVITY

At the Jefferies conference, TE Connectivity presented a diversified growth strategy in which AI data‑center connectivity makes a strong contribution, but energy, industrial automation, mobility and aerospace/defence also deliver growth. AI orders rose about 70% in 2026 and are estimated to account for roughly 40% of revenue growth, which is expected to continue into 2027, while annual AI growth has eased from 70% to about 33% due to capacity adjustments. The data‑center networking business is around $3bn, with power connectivity making up one third; copper remains central while fiber is used selectively. The energy business expects mid‑teens organic growth, transportation and industrials achieve operating margins around 22%, and further capacity expansions as well as acquisitions are being pursued. » Altro su de.investing.com

At the Citi conference TE Connectivity said growth is being driven by data centers, energy, industrial, transport and defense and is not solely AI-driven. In the third fiscal quarter revenue rose 14% (organic 12%) and EPS grew faster than revenue; DDN orders increased 70%, indicating high revenue potential for 2027. The industrial business contributes about $2.5bn to growth (roughly 80% of total growth), margins are around 22% with expected annual expansion of 30–50 basis points. Free cash flow conversion is near 100%, 30% of FCF is paid as dividends; share buybacks and acquisitions will continue. » Altro su de.investing.com

The London Company trimmed its position in TE Connectivity to manage concentrated exposure to the AI and data center infrastructure buildout while retaining the stock with conviction. The firm cited ongoing demand for connectors and a potential automotive recovery as compelling catalysts. The move reflects portfolio-level risk control amid strong market momentum in AI-related sectors. » Altro su finance.yahoo.com