S&P 500 · connectors · AI server No.2
TE Connectivity
The world's largest electrical-connector maker and No.2 (behind Amphenol) in AI-datacenter high-speed interconnect, holding structural demand for as long as rack data stays on copper. As an NVLink backup supplier and a maker of DAC/AEC (active copper cables) it ships 800G AEC, and record orders of $5.1B (book-to-bill 1.10) prove the Data & Networks segment's growth. Data & Networks and Energy make up two-thirds of the industry's next five years of growth, shifting the center of gravity from industrial/transport to AI infrastructure.
TEL Updated Jul 12, 2026 4 AI consumers
Per the valuechain.wiki graph, TE Connectivity is directly linked to 2 companies (0 supply, 2 revenue relationships) and reaches 37 companies within two hops; the links are backed by 4 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · $5.1B orders (1.10 B/B)
- Customer concentration · No.1 connectors; NVLink backup, 800G AEC.
- Segments · Data & networks (AI connectors) · Industrial/transport
Revenue from
- Server ODMs · industrial · transport (connectors) High confidence
Supplies connectors and cables to server ODMs, industry and transport — the traditional demand axis beyond datacenters; growth shifts to AI infrastructure, but auto and factory connectors underpin the earnings base. - NVIDIA Medium confidence
Supplies NVLink backup and DAC/AEC copper cables to NVIDIA (800G AEC). - Foxconn (Hon Hai) Medium confidence
Connectors/DAC to server ODMs.
Pays to
- manufacturing & capacity expansion (undisclosed) Low confidence
Capex in connector/cable production and AEC/DAC expansion — capacity build-out to absorb 800G high-speed-cable demand, governing cost and lead times (undisclosed). - copper, materials & manufacturing (undisclosed) Low confidence
Purchases of copper and precision materials are the cost core — copper prices and precision-machining yields decide margins, and metal exposure grows as copper cables like AEC take a larger share (suppliers undisclosed).
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Dell Technologies | lead2 | +51.2 | -26.6 | +95.9 | +53 | +11.2 | +248.1 |
| Lenovo | lead2 | -4.6 | -20.9 | +36.2 | +18.2 | -0.6 | +175.7 |
| Hewlett Packard Enterprise | lead2 | +37.4 | +4.5 | +9.7 | +29.1 | +15.5 | +104 |
| TeraWulf | lead2 | +77.1 | -95.5 | +258.2 | +135.8 | +103 | +91.2 |
| Aurora Innovation | lead2 | · | -89.3 | +261.2 | +44.2 | -39 | +66.1 |
| Mercury Systems | lead2 | -37.5 | -18.7 | -18.3 | +14.8 | +73.8 | +47.9 |
| ASUSTeK Computer | lead2 | +35.5 | -12.9 | +72 | +41.1 | -14.1 | +46.7 |
| Wiwynn | lead2 | +24.7 | -22.3 | +206.4 | +3.5 | +64.4 | +45.1 |
| Gigabyte Technology | lead2 | +82.3 | -3.4 | +173.2 | -15.9 | -4.7 | +44.4 |
| Cloudflare | lead2 | +73 | -65.6 | +84.2 | +29.3 | +83.1 | +36.1 |
| Quanta Computer | lead2 | +22.2 | -12.8 | +254.5 | +12.7 | +8.9 | +33.4 |
| SK Telecom | lead2 | +7.9 | -12 | +15.8 | +15.5 | +37.5 | +23.4 |
| Celestica | lead2 | +37.9 | +1.3 | +159.8 | +215.2 | +220.3 | +21.7 |
| Geely Auto | lead2 | -40.8 | -22.9 | -40.3 | +98.5 | +14.5 | +18.9 |
| Wistron | lead2 | +7.9 | +9.7 | +272.7 | -1.6 | +22.7 | +14.8 |
| Alphabet (Google) | lead2 | +65.3 | -39.1 | +58.3 | +36 | +66 | +14.3 |
| Foxconn (Hon Hai) | lead2 | -5.1 | +2.8 | +7.8 | +80.1 | +26.9 | +10.9 |
| IREN | lead2 | · | -92.3 | +472 | +37.3 | +284.6 | +8.9 |
| Amazon | lead2 | +2.4 | -49.6 | +80.9 | +44.4 | +5.2 | +6.3 |
| Meta Platforms | lead2 | +23.1 | -64.2 | +194.1 | +66 | +13.1 | +1.6 |
| Tempus AI | lead2 | · | · | · | · | +74.9 | -1.4 |
| IBM | lead2 | +16.7 | +10.6 | +21.8 | +39.3 | +38.2 | -1.6 |
| Super Micro | lead2 | +38.8 | +86.8 | +246.2 | +7.2 | -4 | -3.3 |
| General Motors | lead2 | +40.8 | -42.4 | +7.9 | +49.8 | +54.2 | -3.8 |
| IonQ | lead2 | · | -79.3 | +259.1 | +237.1 | +7.4 | -4.5 |
| Hyundai Motor Company | lead2 | -16.7 | -4.7 | +16.2 | +12.3 | +158.8 | -7.8 |
| Tesla | lead2 | +49.8 | -65 | +101.7 | +62.5 | +11.4 | -9.3 |
| Toyota Motor Corporation | lead2 | +58.1 | -13.4 | +63 | +1.8 | +21.8 | -18.2 |
| Microsoft | lead2 | +52.5 | -28 | +58.2 | +12.9 | +15.6 | -20 |
| Alibaba Group | lead2 | -49 | -25.8 | -10.8 | +11.8 | +75.8 | -22.7 |
| Tencent Holdings Limited | lead2 | -28.6 | -14.2 | -28.7 | +49.8 | +52.1 | -23.2 |
| Baidu | lead2 | · | -8.2 | -23.4 | -13.5 | +74.2 | -24.5 |
| Rigetti Computing | lead2 | · | -92.9 | +35.1 | +1449.2 | +45.2 | -25.3 |
| Oracle | lead2 | +36.9 | -4.6 | +30.9 | +60 | +18.1 | -27.4 |
| Kratos Defense | lead2 | -29.3 | -46.8 | +96.6 | +30 | +187.8 | -36.5 |
| Pony.ai | lead2 | · | · | · | · | +1 | -54.6 |
| NVIDIA | lead1 | +125.5 | -50.3 | +239 | +171.2 | +38.9 | +13.3 |
| TE Connectivity | node | +35.1 | -27.7 | +24.6 | +3.5 | +61.1 | -11.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
The thesis is how far TE can grow its No.2 (behind Amphenol) position in AI-datacenter connectors and cables. Record orders of $5.1B (book-to-bill 1.10) and Data & Networks growth come from NVLink backup supply and 800G AEC (active copper cable) adoption — structural demand for as long as rack interconnect stays on copper. But as the 2026 stock pullback shows, customer (NVIDIA, Foxconn) volume expectations are already substantially priced in, so the pace of earnings realization is what matters. Data & Networks and Energy make up two-thirds of the industry's next five years of growth, shifting the weight from industrial/transport to AI infrastructure.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 2 · Hold 1 · Sell 0 · Avg. target $272 · Price $200.36 (07-10) · Upside +36%