TE Connectivity Ltd. (NYSE: TEL) has demonstrated significant growth in the third quarter of 2025, as highlighted in the latest investor letter from Janus Henderson Investors. The company reported record net sales, a robust operating margin, and strong cash generation, reflecting its strategic positioning in the connectivity and sensor solutions market.
Impressive Quarterly Performance
According to the Janus Henderson Global Sustainable Equity Fund, TE Connectivity’s shares gained 4.69% over the past month and an impressive 59.92% over the last year. As of December 23, 2025, the stock closed at $232.69 per share, contributing to a market capitalization of $68.541 billion. This performance is attributed to the company’s ability to tap into the growing demand for artificial intelligence and renewable energy solutions.
Janus Henderson’s investor letter emphasized that TE Connectivity is benefiting from broad-based strength in the AI sector and ongoing investments in renewable energy and electric grid infrastructure. The company is recognized as a leader in the connectors and sensors industry, designing and manufacturing devices that facilitate the flow of power and data across various sectors, including automotive and energy.
Strategic Advantages and Market Position
TE Connectivity’s global footprint positions it well to navigate market challenges such as tariffs. Notably, approximately 75% of its revenue is generated outside the United States, with a similar proportion of its manufacturing strategically located in regions aligned with sales. This geographic diversification mitigates risks associated with fluctuating trade policies.
Despite its strong performance, TE Connectivity is not among the top 30 most popular stocks among hedge funds. At the end of the third quarter, 60 hedge fund portfolios included TE Connectivity, an increase from 47 in the previous quarter. While the company shows promise, some analysts at Janus Henderson suggest that other AI-focused stocks could offer greater potential for higher returns in a shorter timeframe.
For investors seeking alternatives, Janus Henderson points to other AI stocks with high upside potential, emphasizing the dynamic nature of the sector. This perspective is backed by ongoing research and analysis, illustrating the rapid evolution of technology and its impact on investment strategies.
In conclusion, TE Connectivity’s robust financial metrics and strategic positioning within the AI and renewable sectors make it a noteworthy stock. However, investors are encouraged to consider a diverse range of options in this rapidly changing market environment.