Connector manufacturer Amphenol is on an acquisition spree. Despite facing fierce competition, the company's

 strength lies in its broad customer reach. Furthermore, demand for artificial intelligence (AI) is driving rapid 

revenue growth.

In the space of just a few weeks, Amphenol acquired CommScope's Connectivity and Cable Solutions (CCS)

 division for $10.5 billion and subsequently signed another $1 billion agreement to acquire cable assembly

 manufacturer Trexon. These acquisitions, combined with a diversified product portfolio, could strengthen

 its position in the telecommunications equipment market.

In addition to broadband and mobile communications, Amphenol also manufactures interconnect equipment 

for the automotive, industrial, aerospace and defense, and IT and data communications markets. Its acquisition 

interests are equally broad, having recently completed the $300 million acquisition of Narda-MITEQ, which 

designs RF and microwave components and subsystems for military and commercial customers.

However, data communications is where Amphenol is truly seeing demand. This is unsurprising given the 

simultaneous acceleration of data center construction and AI applications. During the company's second-quarter 

earnings call, Amphenol CEO Adam Norwitt noted that AI demand accounted for approximately two-thirds of 

the year-over-year growth in IT data communications revenue, with shipments exceeding expectations. "We 

have a very broad business...some of the largest companies are investing in this area," he said, noting that 

AI orders are coming from web-scale companies, chipmakers, and original equipment manufacturers (OEMs).

Amphenol's acquisition spree is just one ripple in a broader wave of mergers and acquisitions in the telecom 

and tech industries. Heynen previously stated that mergers between large carriers have historically led to 

consolidation among broadband equipment suppliers. Currently, the industry is characterized by "a large number

 of suppliers chasing a smaller number of large customers." He concluded, "The maturing broadband equipment

 market, coupled with the significant investment in AI and data centers, suggests we will see more supplier 

consolidation in the broadband equipment market."