TE Connectivity (TEL) Jefferies Global Industrials Conference 2026 summary

AI and data connectivity growth

• Orders in the AI segment are up 70% this year, setting up strong momentum into 2027 as connectivity needs for GPUs and hyperscalers expand.

• AI-related business accounts for about 40% of growth this year, with the industrial segment driving a $2.5 billion increase.

• Copper remains a key technology in data racks due to cost and power efficiency, with ongoing customer experimentation between copper and optics.

• The RAM Photonics acquisition supports future optics capabilities, with meaningful revenue expected by 2028–2029 as customer qualifications progress.

• Power connectivity is growing, now about one-third of the DDN business, with architectural changes like 800-volt racks potentially increasing content per rack by 50%.

Industrial and energy segment expansion

• Energy business growth is driven by a focus on North America, now 70% of exposure, with mid-teens organic growth expected to continue.

• Investments in medium voltage and undergrounding, along with acquisitions like Richards and Harger, support grid modernization and utility infrastructure.

• Renewables exposure is mainly in utility-scale solar in North America, with European investments in LNG facilities contributing to future double-digit growth.

• Ongoing capacity additions in New Jersey and Ohio are aimed at capturing U.S. energy infrastructure opportunities.

• The company continues to seek both organic and inorganic growth, especially in fragmented energy markets and overhead utility components.

Automation, industrial recovery, and technology trends

• The ACL (automation) segment is experiencing a cyclical inflection, with growth seen across all regions and driven by factory automation and data needs.

• Efficiency and productivity improvements, enabled by data connectivity and AI, are key drivers of the current industrial cycle, which differs from past cycles focused on automotive.

• Early-stage opportunities exist in humanoid robotics, with potential for future content growth as architectures develop.

• The company leverages AI internally for engineering and manufacturing efficiency, accelerating data-driven productivity.