Analysis of Benzinga’s 4 Stocks Highlighted for the Next AI Rally Phase

This analysis is based on the Benzinga report [1] published on 2025-12-03, which identifies Alphabet (GOOG), TTM Technologies (TTMI), Celestica (CLS), and Amphenol (APH) as potential candidates for the next leg of the AI rally. The report indicates a shift in AI market leadership from traditional players (NVIDIA, Microsoft, Tesla) to these four companies, driven by two key factors: AI technological advancements (Alphabet’s Gemini V3 and Waymo initiatives) and growing demand for AI-related hardware infrastructure (TTMI’s high-density PCBs, Celestica’s data center servers/switches, Amphenol’s connectors/cables) [1].

As of the event day’s regular trading hours, three stocks outperformed the broader tech sector (which gained 0.69% [0]): TTMI (+2.84%), CLS (+2.60%), and GOOG (+1.53%), while APH (-1.07%) underperformed but retains strong YTD growth of 104% [0]. Valuation analysis shows hardware stocks (TTMI, CLS, APH) have higher TTM P/E ratios (54.48, 50.85, 46.81 respectively) reflecting market optimism for AI-driven growth, while GOOG’s more moderate P/E (31.64) aligns with its diversified business model [0].

1. AI Rally Expansion to Non-Traditional Players
   : The report signals a transition in AI market leadership from established AI/software leaders to hardware infrastructure providers and companies with emerging AI capabilities, indicating the rally’s growing breadth.
2. Alphabet’s Competitive Positioning
   : Alphabet’s Gemini V3 and Waymo advancements position it to compete with leading AI platforms, potentially boosting its cloud and advertising revenue streams.
3. Valuation-Driven Optimism and Risk
   : High P/E ratios for hardware stocks (TTMI, CLS, APH) reflect strong market expectations for AI-related growth, but also introduce valuation risk if growth fails to meet projections.
4. Volatility in High-Growth Stocks
   : APH’s 1.07% decline on the event day, despite its 104% YTD gain, demonstrates potential short-term volatility in stocks with significant prior growth.

• Opportunities
  :
  • Increased AI data center capex is expected to drive demand for hardware products (TTMI’s PCBs, CLS’s servers, APH’s connectors) [1].
  • Alphabet’s Gemini V3 and Waymo initiatives present opportunities to capture market share in AI platforms and autonomous vehicles.
• Risks
  :
  • Valuation Risk
    : High P/E ratios for TTMI, CLS, and APH may limit upside if AI growth underperforms expectations [0].
  • Competition Risk
    : Alphabet faces intense competition from Microsoft’s Copilot and OpenAI’s ChatGPT [1].
  • Volatility Risk
    : Short-term pullbacks are possible for stocks with strong uptrends, as seen in APH’s event-day decline [0].
  • Supply Chain Risk
    : AI hardware providers (TTMI, CLS, APH) may face disruptions affecting production and delivery.

• Stocks Analyzed
  : GOOG, TTMI, CLS, APH
• Market Caps
  : GOOG ($3.87T), TTMI ($7.09B), CLS ($35.91B), APH ($171.34B)
• YTD Gains
  : TTMI (~170%), CLS (~438%), APH (~104%), GOOG (~125%)
• Event-Day Volume
  : 54% (GOOG), 23% (TTMI), 41% (CLS), 57% (APH) of 50-day averages [0]
• Technical Indicators
  : All stocks traded above their 50-day/200-day SMAs [1]

This summary provides factual market context and analytical insights without prescriptive investment recommendations.