Fund managers reported a broad-based increase in orders during the quarter, attributing the trend to ongoing investment in AI infrastructure as well as projects aimed at strengthening electric grids and expanding renewable capacity. Management at TE Connectivity has stated that roughly three-quarters of the company’s revenue originates outside the United States and about two-thirds of manufacturing and sales occur within the same geographic regions. According to the fund, that regional alignment should help mitigate the impact of cross-border tariffs and supply-chain disruptions.
TE Connectivity designs and manufactures connectors and sensors used to protect and route the flow of electricity and data. Its products are deployed in server farms, electric vehicles, industrial equipment, aerospace systems and energy installations. The company’s diversified end-market exposure is viewed by portfolio managers as a buffer against cyclical downturns in any single industry.
Hedge-fund participation in TE Connectivity also increased during the quarter. A survey of public filings shows that 60 hedge-fund portfolios held the stock at the end of the third quarter of 2025, up from 47 three months earlier. While that figure does not place the company among the 30 most widely held equities by hedge funds, it indicates a rising level of institutional interest.
Janus Henderson’s letter pointed to record operating margin alongside robust free-cash generation as key metrics supporting the investment thesis. Those factors, coupled with the company’s position in high-growth technology sub-segments, were cited as reasons for confidence. Nonetheless, the letter acknowledged that other AI-related stocks may offer greater near-term upside or lower downside risk, suggesting that investors maintain a diversified approach when seeking exposure to the theme.
Global markets have rallied throughout 2025 as central banks in several major economies eased monetary policy after signs of moderating inflation. The resulting liquidity has benefited companies tied to data-center expansion and electrification. TE Connectivity has participated in that trend by supplying high-speed connectors for advanced computing systems and ruggedized components for renewable-energy installations.
In the automotive sector, the company’s products support the transition to electric vehicles by enabling battery connections and high-voltage power distribution. Management has also emphasized opportunities in industrial automation, where sensors and connectors support increased data collection and machine-to-machine communication.
While investors continue to monitor macroeconomic variables, TE Connectivity’s regional manufacturing footprint has received attention. By producing components close to end markets, the firm reduces logistics complexity and potential tariff exposure, factors viewed favorably in the current geopolitical environment. For additional context on the company’s supply-chain disclosures, readers may consult filings available through the U.S. Securities and Exchange Commission.
Looking ahead, analysts will assess whether orders linked to AI servers, renewable-energy projects and electric-vehicle production can sustain the momentum observed in 2025. Management’s guidance on capital expenditures, margin targets and cash-deployment priorities is expected to influence market sentiment during upcoming earnings releases.
For now, TE Connectivity remains a prominent holding in Janus Henderson’s sustainable equity strategy, supported by what the fund described as record financial results and a resilient demand backdrop across multiple technology-driven markets.
Crédito da imagem: TE Connectivity
