Avnet (AVT) Bank of America 2026 Global Technology Conference summary

Market cycle and industry trends

• Current cycle differs from previous ones, with a broad-based, diverse recovery across verticals and geographies, especially post-COVID.

• Data center, hyperscale, compute, industrial, automotive, and aerospace/defense sectors are all experiencing growth.

• Asia-Pacific has seen eight consecutive quarters of year-over-year growth, with Europe and the Americas also rebounding.

• Test and measurement markets are strong, indicating positive momentum in semiconductors.

• Vigilance is emphasized despite positive data, as market complexity remains high.

Backlog, lead times, and pricing

• Backlog is 50%-80% higher than last year, with solid book-to-bill ratios across all regions and verticals.

• Lead times are mixed; memory and power-related components remain tight, with some pricing increases.

• High-end capacitors, Hi-Rel products, and certain controllers are experiencing extended lead times and price hikes.

• Price increases are more controlled than in previous cycles, with better customer communication.

Strategic relevance and value-added services

• Strategic relevance is increasing due to growing supply chain complexity and the need for value-added services.

• Services span from design to manufacturing, including demand creation and supply chain management.

• Value-added services include cable assembly, chip programming, special handling, design services, and supply chain solutions.

• Over 70% of shipments involve some form of value-added service.