TE Connectivity (TEL)

Connectors + sensors (TE Connectivity) — interconnect for data centers, auto, industrial

AI exposure 15% — derived from reported segment revenue, not asserted.

Where it sits

Connectivity → Electronics Connectors · figures rebased to Q3 FY2026, reported 2026-07-22

Connectors/sensors for automotive, commercial transport (harsh environment) leads 2 businesses in this sub-tier that together are 85% of revenue, so Electronics Connectors is effectively the whole company rather than one leg of it. The rest is tagged separately: Defense & Government AI at 15%.

Also tagged: emerging in Frontier & Emerging Bets → Defense & Government AI.

Reported segments

• Transportation Solutions — 50% of revenue
• Industrial Solutions — 50% of revenue

TE Connectivity ($5.16B Q3 FY2026, +14% sales growth and +19% EPS growth, with record orders). The two segments are now exactly level: Transportation Solutions 50% ($2.58B, +7% reported, +5% organic) and Industrial Solutions 50% ($2.58B, +22% reported, +21% organic) = primary B3 Electronics Connectors on the digital data networks line inside Industrial, which carries the AI data-centre interconnect. Industrial has closed a 10-point gap on Transportation in a year. The split inside Industrial is an Atlas estimate at the prior ratio.

How the 15% is built

• Transportation Solutions — 50% of revenue × 0% AI-driven (disclosed). Automotive and commercial-transport connectors and sensors — no AI-infrastructure content
• Industrial Solutions — 50% of revenue × 30% AI-driven (disclosed). Digital data networks supply AI data-centre interconnect; automation, aerospace and defence make up the rest of the segment

Investment read

Moat. Connector and sensor breadth with design-win stickiness, and the data-center slice is no longer a slice — Industrial is roughly half of revenue growing 21-22% organically, Digital Data Networks revenue reached $813M (+34% YoY), and AI-related revenue hit a ~$3B annualized run-rate a year ahead of plan. Content per program is the edge; Amphenol and Molex contest every socket.

Bottleneck / pricing power. Moderate pricing power with volume-driven operating leverage — Q3 FY2026 record sales of $5.16B (+12% organic) and adjusted EPS +22%, on record orders of $5.7B (+27%, book-to-bill ~1.10). Connectors remain competitively bid and TE is not an allocated or scarce resource in the AI supply chain.

Role in the AI stack. The connector/sensor layer — data-center, auto, industrial.

Connected companies

• NVIDIA (NVDA) — TEL supplies: high-speed connectors
• Amphenol (APH) — TEL competes with: Largest connector rivalry — APH ~AI datacom leader, TEL ~14.8% connector share, head-to-head nearly every segment
• Microsoft (MSFT) — TEL supplies: connectors/interconnect for Microsoft data centers
• Meta Platforms (META) — TEL supplies: power connectors/busbars for Meta's OCP Open Rack v3 AI racks, incl. joint TE-Meta vertical busbar design
• Alphabet (GOOGL) — TEL supplies: connectors for GOOGL AI data centers
• Amazon (AMZN) — TEL supplies: connectors reaching AMZN AI data centers, largely via server ODMs
• Oracle (ORCL) — TEL supplies: connectors in the AI racks Oracle deploys (supplied via ODMs)
• CoreWeave (CRWV) — TEL supplies: connector content inside CRWV's racks, sold through OEMs/ODMs
• Bel Fuse (BELFB) — TEL competes with: Connector overlap — Bel Fuse (Cinch/harsh-env, networking magnetics) vs TE Connectivity, with TE far larger
• Freeport-McMoRan (FCX) — TEL is supplied by: Copper alloy (via commodity cathode chain) is TE's largest raw-material exposure; no direct FCX-TE supply named
• Southern Copper (SCCO) — TEL is supplied by: Copper alloy (via commodity cathode chain) is TE's largest raw-material exposure; no direct SCCO-TE supply named

Others in Electronics Connectors

• Amphenol (APH)

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