The value of these "dark horse" shares has grown by only 150% during the last 12 months. Being one of the global leaders in high-tech interconnect, sensor and antenna solutions for automotive applications, commercial and defence aerospace industry, industrial machines as well as mobile devices, cable, satellite and data networks, this company also has been sighted in supplying a sizable content for Nvidia’s rack-scale architecture. NVIDIA's newest superchip system GB200 NVL72 is to connect 36 Grace central processing units (CPUs) with 72 Blackwell graphic processing units (GPUs) in order to "unlock" the last generation of real-time trillion-parameter models.
The Blackwell chip based system was introduced for the public on March 18. According to Evercore ISI strategic advisory management, this very demanded product uses a substantial amount of copper connectivity, incorporating Amphenol’s cable joints and other necessary components by the Amphenol company. While its glory remained in the shadows of a widely celebrated AI-related rally, Amphenol share price additionally added nearly 6.5% in just a dozen of trading days after the Nvidia NVL72 announcement. This moment may look as the first quadrille of this Amphenol Cinderella in the eyes of an unsophisticated audience, yet the actual kiss of the prince is yet to come.
The NVL72 system may be involved in approximately $500 million of Nvidia's AI revenues. By the way, Amazon Web Services (AWS) and Nvidia say they are now extending "deep" collaboration, which goes back more than 13 years, based on a "first-of-its-kind" supercomputer, being built using the GB200 Grace Blackwell processors inside the NVL72 system, in order to "advance generative AI innovation". "Together we launched the world’s first GPU cloud instance on AWS, and today we offer the widest range of Nvidia GPU solutions for customers,” said Adam Selipsky, CEO at AWS. If so, Amphenol may rely on at least a small piece of this vast pie, as the reported cost of Amphenol materials in each NVIDIA system could be within a range of $100,000 to $120,000.
The exact numbers are not clear, yet we believe that pure publishing this information by professional media sources would be enough for the further rise in the company's market value by at least 15% to 20%. We bet that the stock price may additionally show some single-digit growth already before its official earnings date, which is April 24, 2024. In nearest months, we may expect a sparkling rally of Amphenol, with the first target price between $135 and $140 per share, compared to $117.50 at a pre-market trading on April 4.
