Jim Cramer Backs TE Connectivity Amid AI Growth Concerns and Analyst Downgrades

Key Facts

Amid shifting sentiment regarding the sustainability of the AI infrastructure boom, TE Connectivity has emerged as a focal point for value-oriented investors. Jim Cramer expressed strong positive sentiment for the stock, stating that its current trading multiple is too low and fundamentally undervalued. According to reports, Cramer defended the company's high quality, suggesting it remains a top pick for long-term growth despite recent cooling expectations in the broader tech sector.

Institutional support further bolsters this narrative, with the Bell Global Equities Fund highlighting TEL's market share growth in critical areas such as EV components, factory robotics, and AI server racks. This optimism aligns with broader industry trends; for instance, peer company Amphenol (APH) reported robust quarterly earnings growth exceeding 15% per market data, providing a constructive backdrop for the electronic components industry even after the recent downgrade by Evercore ISI.

From a technical perspective, TEL closed at $197.44 (close July 02, 2026), having touched a session high of $205.67 according to market data. Investors should watch for price stability above the recent low of $195.22, while keeping an eye on the upcoming Manufacturing PMI data from China on June 30, which serves as a key catalyst for global industrial and robotics demand.