New York, January 20, 2026, 14:52 EST — Regular session
- Amphenol shares dipped roughly 2.4% amid volatile afternoon trading
- Tariff fears and spending concerns drag tech and hardware stocks lower, sapping risk appetite
- Attention shifts to Amphenol’s fourth-quarter update set for next week
Shares of Amphenol Corp (NYSE: APH) dropped 2.4% to $150.62 Tuesday afternoon, erasing earlier gains in a choppy session. The stock swung between a high of $154.36 and a low of $148.50. Trading volume reached roughly 6.1 million shares.
This move is significant now since Amphenol plays a key role in the supply chain for data centers and other electronics. Sentiment can shift quickly once traders begin second-guessing corporate tech budgets and component prices. A macro shock could amplify those swings.
Amphenol is set to report its fourth-quarter results on Jan. 28, a key date for investors eager to gauge demand trends and margin performance. 1
Stocks fell broadly after President Donald Trump threatened new tariffs on several European allies, reigniting fears of a trade war and pushing investors toward a “risk-off” stance—trader jargon for shedding riskier assets like stocks in favor of safer ones. Wasif Latif, chief investment officer at Sarmaya Partners, urged caution, saying markets “have to take all this with a grain of salt.” Amundi’s Amelie Derambure described the moves as “precautionary profit-taking and some risk reduction.” 2
Hardware stocks slipped after Morgan Stanley cut its rating on North American IT hardware to “cautious” from “in line,” citing slowing demand and rising component costs. The firm warned of a “perfect storm” brewing—weakening demand, cost inflation, and stretched valuations. Its survey showed hardware budgets are expected to grow by just 1% in 2026. 3
The tech sector took a hit. The Nasdaq-focused Invesco QQQ dropped roughly 2.0%, while the VanEck Semiconductor ETF (SMH) fell 2.6%. It was a tough day for firms linked to chips, servers, and the infrastructure that supports them.
Peers followed suit. TE Connectivity, a major player in connectors, dropped roughly 3.1%, and Corning, linked to communications networks supply, slipped about 2.6%.
Amphenol has been riding strong demand linked to AI and data communications, serving as a crucial gauge for the infrastructure behind major cloud and enterprise budgets. In October, it projected fourth-quarter revenue between $6.0 billion and $6.1 billion, with adjusted earnings of 89 to 91 cents per share. The company also raised its quarterly dividend. 4
Tariff discussions have resurfaced, and investors are tuning in to see if customers are rushing orders, delaying projects, or pushing for discounts amid rising costs. Even a slight tightening of hardware budgets can quickly impact orders for connectors, cables, and other components.
There’s another angle here. If tariff threats are trimmed through negotiations and the data-center expansion continues as planned, Tuesday’s sell-off could end up looking more like de-risking than a shift in the underlying story.
On Jan. 28, Amphenol will release its results and field questions from analysts. Investors are eager for the 2026 outlook and will be keeping a close eye on Washington for any definitive tariff moves ahead of the call.
