Nvidia Collaborator And AI Data Center Play Holds Support Amid Market Sell-Off

At a time when the major indexes and many stocks are below key moving averages, TE Connectivity (TEL) is holding support at these levels and is Investor’s Business Daily’s Big Cap 20 name to watch this week. Shares are also close to a consolidation buy point.

TE Connectivity offers investors exposure to the artificial intelligence data center space, as the company plays an integral role in providing the sensors and connectivity solutions used by Nvidia (NVDA), Tesla (TSLA) and others. Heightened demand for its products and services has caused shares to roughly double since its April 2025 lows.

				    ↑
					X

This video file cannot be played.(Error Code: 102630)

								Indexes Recover A Bit From Harsh Sell-Off; Imax, XPO, United Airlines In Focus
							

							

								See All Videos
							

						

					
					
						NOW PLAYING
						Indexes Recover A Bit From Harsh Sell-Off; Imax, XPO, United Airlines In Focus

TE Connectivity: Multiple Quarters Of Accelerating Growth

Based in Ireland, TE Connectivity’s sensor solutions are used in a variety of fields from transportation to energy networks to automated factories. It has customers in about 130 countries.

The AI technology enabler’s solid earnings track record of double-digit growth has also sparked demand among investors. TE Connectivity has generated three quarters of accelerating top- and bottom-line growth.

The company saw 22% sales growth to more than $4.66 billion and 33% earnings growth to $2.72 per share in the most recent fourth quarter. Both year-over-year growth figures mark a third-straight acceleration in growth.

Earnings growth over the past four quarters has come in at 13%, 19%, 25% and 33%.

For fiscal year 2026, analysts expect TE Connectivity earnings to climb 25% to $11.05 per share. That should be followed by a 12% increase in fiscal 2027, according to Investor’s Business Daily’s MarketSurge.

Stock Holds Support Amid Market Declines

Despite a roughly 2.3% drop on Friday, TE stock is getting support at its conjoined 50-day and 21-day lines, a bullish sign. Prior to Friday’s pullback, shares were quickly approaching a 250.67 consolidation buy point, according to IBD MarketSurge chart analysis.

After hitting a record high in November — which now serves as the buy point — the stock pulled back and has traded sideways for the past few months.

The recent consolidation occurred after a powerful 115% run. That came over the course of seven months from April 2025 to November 2025. During the consolidation, shares pulled back all the way to the 40-week line. But they touched off support and are back above all the stock’s moving averages.

Its relative strength line has struggled and is trending sideways, showing the stock has been performing alongside the overall market. But a near ideal 98 IBD Composite Rating means this stock is still one to watch. The stock also has a solid 93 out of a best-possible 99 Earnings Per Share Rating.

YOU MAY ALSO LIKE:

Get Full Access To IBD Stock Lists And Ratings

Why This IBD Tool Simplifies The Search For Top Stocks

IBD Digital: Unlock IBD’s Premium Lists, Tools And Analysis Today

How To Invest: Rules For When To Buy And Sell In Bull And Bear Markets

S&P 500 Hits Fresh High; Fed, Huge Earnings Loom