Amphenol Downgraded: Analyst Cites NVIDIA Design Changes As Risk To AI Revenue Growth
Portfolio Pulse from Lekha Gupta
Amphenol Corporation (NYSE:APH) has been downgraded by B of A Securities due to potential design changes in NVIDIA's systems that could impact Amphenol's AI revenue. The changes may lead to a reduction in Amphenol's market opportunities, affecting its EPS targets for 2025/2026.
September 04, 2024 | 6:12 pm
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NEGATIVE IMPACT
Amphenol's stock was downgraded from Buy to Neutral by B of A Securities, with a price target reduction from $80 to $71. This is due to potential design changes in NVIDIA's systems that could reduce Amphenol's AI revenue opportunities.
The downgrade and price target reduction are directly linked to potential design changes in NVIDIA's systems, which could significantly impact Amphenol's AI revenue. This is a critical development for investors as it affects future revenue projections and EPS targets.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
AdvisorShares Focused Equity ETF, which includes Amphenol, might experience a minor impact due to the downgrade of Amphenol's stock.
CWS, holding Amphenol, could see a slight impact from the downgrade, depending on Amphenol's weight in the ETF portfolio.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEGATIVE IMPACT
Spear Alpha ETF, which includes Amphenol, may see a slight impact due to the downgrade of Amphenol's stock, affecting its overall performance.
As an ETF holding Amphenol, SPRX might experience a minor impact due to the downgrade, affecting its performance depending on the weight of Amphenol in the ETF.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
NVIDIA's design changes in GB200-based systems may lead to a shift from Amphenol's flyover cables to PCBs, impacting Amphenol's revenue. This indicates potential adjustments in NVIDIA's product design strategy.
While the news primarily impacts Amphenol, it also suggests a shift in NVIDIA's design strategy, which could have broader implications for its supply chain and product offerings.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50