Amphenol Stock Plunges 6.8% Amid Patent Dispute

On April 3, 2025, Amphenol's stock experienced a significant drop of 6.8% in pre-market trading, reflecting a notable decline in investor sentiment.

Amphenol Corporation is currently facing patent infringement allegations from Credo Technology Group, which could potentially impact its operations and financial performance. The allegations involve active electrical cables, a critical component in many of Amphenol's products.

Amphenol's stock has seen increased activity from institutional investors. Mitsubishi UFJ Asset Management Co. Ltd. recently increased its stake in the company, indicating confidence in its long-term prospects. However, American Century Companies Inc. reduced its holdings by 21.1% during the fourth quarter, suggesting a more cautious approach.

Despite the recent challenges, Amphenol has historically outperformed the market. Over the past decade, the company has delivered an average annual return of 18.71%, outperforming the broader market by 6.69% on an annualized basis. This strong performance underscores the company's resilience and potential for future growth.