Adam Norwitt: Well, thank you very much, Wamsi. Well, you’re asking me to do a tough thing, which is to talk about the next two years, in a very volatile space, which is communication. I think that’s hard to say what will be the overall growth across communications. I would tell you, we see great opportunities across each of those areas with different things going on because remember, communications, not just IT datacom, it includes mobile networks. It includes mobile devices and obviously, broadband and I think there’s different stuff going on in each of those areas. If you talk just about IT datacom, which is the biggest part of our communications business, I mean there is no doubt that, as I mentioned earlier, these investments in AI, I think we’re in early days on this.
I think that there are going to be more and more developments around the real kind of creation of new economic models around AI and then the investments to support that. That’s already been broadly talked about. You’ve heard folks talking about pretty significant investments in these next-generation systems. And again, the interconnect products are a really integral part of those systems. So, I think on that front, I’m not getting out too ahead of my skis to say that I think at least specific to AI in IT datacom, I would expect over the coming couple of years. to see some great opportunities. I don’t know about the base of IT Datacom over the next two years. I couldn’t — I can barely give you a 90-day kind of a very inaccurate guidance for mobile devices.
I think that on wireless, we’re going through a cycle, which is a typical cycle where they invest in a new type of a standard they wait to see and by day, I mean the service providers, the operators, they wait to see how does that settle out, how do customers take it? Are customers willing to pay more for the functionality that’s delivered by that? And then there starts usually another round of the investments around that. And I think we’re in that low period right now. I couldn’t tell you when that low period will inflect and become more investment. But I can tell you, for sure, that in the coming years, there will need to be more investments around 5G and ultimately 6G and all the wireless networks because the vast majority of people connecting to the Internet are doing it not on a connection like a Cat 5 cable or in an office, they’re doing it on a wireless basis, while they’re moving around the world.
And so that network is going to have to keep up with the data traffic that continues to expand kind of on an unabated basis. And then finally, broadband. Broadband is an area where I think there is a lot of push in countries like ours and others to ensure that there is both the capacity and the coverage for broadband access because it’s viewed not as a luxury, but rather as a necessity that folks can have broadband access. And so I think long term, there’s good opportunities there as well. Relative to China, I think I’m very happy to see that the sort of geopolitics of China and the U.S. seems to be the pendulum is swinging towards a more moderate phase. There’s more people talking and all of that. And we’re encouraged by that. I think the world is a better place when countries are talking rather than arguing, and I think that’s a good thing.
I think there’s a lot written about the Chinese macro environment, and I’m not the expert to sort of go off on that. But what I will say is that in those areas of the electronics industries, where we support in China, places like the automotive industry, places like the industrial market, we continue to see great opportunities, and our team continues to do a fabulous job of capitalizing on those opportunities for the domestic market. And we feel really good about the position that we have as a company who is, of course, a global company but who operates through our unique organizational approach as a local company in that environment. And being the best of both worlds at a time like this when the world is somewhat uncertain, is a really good advantage for Amphenol.
Operator: And our next caller is Samik Chatterjee with JPMorgan. You may go ahead.
Samik Chatterjee: Hi. Happy New Year, and thanks for taking my question. I guess, Adam, I wanted to see if you can share your thoughts around organic growth opportunities for the company in 2024 related to inorganic growth. You have a strong pipeline of revenue from the acquisitions you’ve closed that you’re on boarding, maybe share your thoughts about how you think about the rest of the business growing, whether they are more positive related to negatives in 2024. And what is the average sort of growth average expected of the acquisitions that you closed more recently for 2024? Thank you.
Adam Norwitt: Yes. Thank you very much. Again, there seems to be a little bit of a cut out of the sound there. But I think your question is, how do I see the organic growth prospects as opposed to just the acquisitions. And I think we feel good about the organic prospects of the company, given all what I talked about each of our individual markets, and I’m not going to go through each of them once again. But I will just tell you that the investments that we’ve made in next-generation technologies, the work that we’ve done to support customers when they need us the most over the last two, three, four years, has positioned us very, very strongly organically to have a strong, robust performance in the years to come. And the other thing I would say as well is we think about acquisitions and obviously, in the first year that you own a company that’s considered acquired growth.
