"The artificial intelligence (AI) boom relies on more than just chips and software - it's built on robust physical infrastructure that handles massive data loads, power demands, and connectivity. As tech giants like Nvidia ( NASDAQ:NVDA ) and Microsoft ( NASDAQ:MSFT ) expand data centers to fuel AI growth, a quieter group of companies provides essential components. Amphenol ( ), Vertiv ( ), and Quanta Services ( ) supply interconnects, cooling systems, and power infrastructure, respectively, often overlooked but critical for scaling AI operations."
"Amphenol specializes in electrical, electronic, and fiber optic connectors used in everything from data centers to telecommunications. In the AI space, its high-speed interconnects are vital for linking servers and handling the data throughput required for training large language models. The company holds a commanding 33% market share in AI and data center interconnects, positioning it as a key player in infrastructure buildouts."
AI expansion requires substantial physical infrastructure to manage massive data throughput, power consumption, and connectivity. Tech giants are expanding data centers while specialized suppliers provide critical components such as interconnects, cooling systems, and power infrastructure. Amphenol holds about 33% market share in AI and data-center interconnects and reported record Q1 2025 results driven by AI demand and design wins in next-generation hardware. Analysts project Amphenol revenue reaching $26.9 billion by 2028, implying roughly 12.7% annual growth. Data-center spending is projected to surge through 2028, creating growth potential for niche infrastructure suppliers.
Read at 24/7 Wall St.
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